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SALT LAKE CITY — Utah’s economy is starting the year on an upward trend, a new report indicates.
The Zions Bank Utah Consumer Attitude Index climbed 4.1 points to 113.4 in January, rising above 110 for the second time in three months and signifying a thriving economy.
Consumers have high confidence in current and future economic prospects, explained Zions Bank economic adviser Randy Shumway.
The index registered 17.2 points higher than its level a year ago, he said. Consumer confidence in Utah also continues to outpace that of the nation. The national Consumer Confidence Index registered at 102.9 — 9.8 points higher than December.
Speaking Tuesday at an economic news conference at the Trolley Square office of the Sundance Film Festival, Shumway said the big jump in the consumer attitudes stems from optimism for the future.
The Expectations Index, a barometer of how consumers feel about economic conditions six months from now, jumped 9.4 points to 113.3 in January. Each of the metrics used to determine confidence in the future — business conditions, job availability and income expectations — rose by more than 5 percent from December to January, the reported stated.
The Present Situation Index, a measure of consumer sentiment regarding current economic conditions, declined 3.9 points to 113.6 this month.
Data for the index were compiled based on a monthly survey using a representative sample of 500 Utah households conducted by The Cicero Group at a confidence interval of plus or minus 4.4 percent at a 95 percent level of confidence. The monthly data are compared with Utah and national data from previous months to identify key consumer sentiment trends.
Also this month, the Zions Bank Wasatch Front Consumer Price Index decreased 0.1 percent from November to December. The index has increased 0.5 percent since this same time last year.
The national Consumer Price Index decreased 0.6 percent from November to December, but has risen 0.8 percent over the past year.
Transportation prices experienced their largest month-to-month decline on record in the Wasatch Front Consumer Price Index, falling 4.4 percent from November to December, Shumway explained. The closest comparison was the 3.9 percent decline that occurred in December 2012, he added.
Gasoline prices were the main driver of the drop in transportation prices, with average prices registering at $2.66 per gallon in December, down from $3.11 in November, Shumway said.
Currently, average gas prices stand at $1.88 per gallon in the Beehive State and $2.03 per gallon nationally.
Low crude oil prices continue to affect gasoline prices and are having a significant impact on national and regional economies around the world, particularly Russia and Venezuela, Shumway said.
Most oil price projections for 2015 do not anticipate a rebound, and some industry experts have expressed their expectations that oil will never again reach $100 per barrel, he said.
Brent crude oil futures are selling at approximately $50 per barrel — less than half of the cost six months ago when crude oil futures were about $108 per barrel, Shumway said.
