Consumer attitudes rising after election

Consumer attitudes rising after election

(Marissa Shields, Zions Bank)


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SALT LAKE CITY — Utah consumers are maintaining a positive economic outlook following the end of a historic presidential election campaign.

The Zions Bank Utah Consumer Attitude Index climbed 3 points to 114.7 in November. The increase was due to slightly greater confidence in the present economy, as well as a more positive outlook on the future economic situation, explained Zions Bank economic adviser Randy Shumway. An overall index of 110 or greater indicates an especially robust economy, he noted.

Shumway didn't tie the increase to the election, although he had questioned in previous months whether the election was a drag on consumer confidence.

“Utahns’ optimism in the economy is justified,” he said Tuesday. “As both new and old businesses alike continue to choose Utah for its business-friendly environment and wealth of educated talent, employment is bound for continued growth.”

By comparison, the national Consumer Confidence Index increased 6.3 points from October to November to register at 107.1.

Based on a representative sample of 500 Utah households surveyed by the Cicero Group, the index has a confidence interval of plus or minus 4.38 percent at a 95 percent confidence level. The most recent data are compared to both local and national data from previous months to identify key consumer sentiment trends in the state.

Shumway noted that the Present Situation Index, the subindex that measures how consumers feel about current economic conditions, also rose 3 points for the month and is 5.7 points higher than it was at the same time in 2015.

Meanwhile, the expectations index, which gauges consumer sentiment for the next six months, jumped 4.3 points in November “due to a slightly more positive outlook on future business conditions.”

The Utah summary reports are released at a regularly scheduled monthly news conference, coinciding with The Conference Board’s national Consumer Confidence Index release date.

“Consumer confidence made huge strides in November, recouping all the territory it had lost in October and reaching its highest point since July 2007,” said Chris Christopher, director of consumer economics at IHS Global Insight — a Massachusetts-based economics forecasting organization. “In October, consumer confidence took a serious hit and was driven mostly by heightened levels of political uncertainty. After the presidential election and the ensuing strong stock market performance, consumer mood brightened considerably.”

The report is good news for many retailers, especially entering the last few weeks of the most important shopping season of the year, he added. “Higher levels of consumer confidence assist in promoting consumer spending,” Christopher said.

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