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SALT LAKE CITY — Utah consumers still have a high opinion of the state's economic fortunes, a new survey indicates.
The Zions Bank Utah Consumer Attitude Index rose 1.1 points to register at 111.4 for the month of August. The increase resulted from greater confidence in the present economy, which more than offsets a slight decline in confidence in the state's future economic situation, the report states.
Comparatively, the national Consumer Confidence Index climbed 4.4 points from July to August to register at 101.1.
The Present Situation Index, the subindex of the overall index that measures how consumers feel about current economic conditions, jumped 5.9 points since last month and registered 6.5 points higher than at this time last year.
Expectations for the next six months decreased 2.1 points in August due to a slightly more negative outlook on future business conditions, said Zions Bank economic adviser Randy Shumway. But he said despite some consumer trepidation, the economy is faring quite well on all levels.
"The economic fundamentals are well in place, both locally and nationally … for solid, consistent growth for the foreseeable future," he said. As for the decline in consumer attitudes regarding the next six months, he attributed it to pessimism "being incorrectly spewed" from the presidential campaign.
"We're on solid footing (economically)," Shumway said.
The overall index is based on a representative sample of 500 Utah households from a monthly survey conducted by Cicero Group with a confidence interval of plus or minus 4.38 percent at a 95 percent confidence level. The overall index data is measured against local and national data from previous months to identify key consumer sentiment trends.
Meanwhile, gasoline prices, which fell through most of June and July, bounced back slightly in late August, sparked by a weakening dollar, Shumway said. Refinery output has also been lower than expected due in part to recent flooding in Louisiana and a refinery fire in Texas, he noted.
The average gasoline price in Utah registered at $2.28 per gallon, while the national average came in at $2.22, he added. Most Utah consumers expect gasoline prices to rise over the next 12 months, the survey states.
Nationally, analysts touted the "comeback" in consumer confidence this month after suffering a slight decline in July.
"The gains in confidence were broad-based and driven by lower pump prices, an improved outlook on job prospects and gains in disposable income," said IHS Global Insight economist Chris Christopher. "The setback in July could be attributed to the volatility in the stock market that ensued in the aftermath of the Brexit vote."
