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SALT LAKE CITY — Although overall current economic conditions in Utah remain strong, residents in the Beehive State are a little less positive about the future, according to the Zions Bank Utah Consumer Attitude Index, which dropped 4.7 points to register at 115.8 in December.
The decline is likely due to recent stock market fluctuations, Scott Anderson, Zions Bank president and CEO, said in a statement announcing this month’s number, which is still above the 110 level that indicates optimal economic activity.
The Utah Present Situation Index — a measure of current economic conditions — decreased 1.7 points to 132.1, while the Utah Expectations — a measure of economic conditions six months from now — index fell 6.6 points to 105.
Nationally, the Consumer Confidence Index decreased 8.3 points to 128.1 for the month.
“It appears that fluctuations in the stock market are impacting consumer perceptions,” Anderson said in the statement, noting the percentage of Utahns who believe current 401(k) investments will be worth more a year from now decreased from 49 percent to 39 percent.
Regarding the fitness of the current economy, Utahns remain pleased. About 58 percent feel business conditions are good, a dip of 6 percent from last month’s record-setting high. And 63 percent feel jobs are plentiful, an increase of 2 percent from last year.
Despite changing perceptions with regards to the investment market, the report noted other market signals indicate economic growth will continue in the state. Utah consumers continue to report that jobs are plentiful and 95 percent of Utahns expect that their incomes will either increase or remain the same in the next six months.
“Federal Reserve rates have just increased for the fifth consecutive quarter,” Randy Shumway, chairman and partner of Cicero Group, said in the statement. “Rate increases are designed to tap the brakes on inflation, but are also a sign that the Federal Reserve Bank has confidence in the economy’s future. Here in Utah, while we are seeing a few blips in the national markets currently, fundamentals around job growth and population growth remain very strong.”
Zions Bank provides the index as a free resource to the communities of Utah. Analysis and data collection for the index is conducted by Cicero Group, a Salt Lake City-based research firm.
