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SALT LAKE CITY — For the first time since February, Utah's consumer sentiment fell significantly in August.
According to the University of Utah Kem C. Gardner Policy Institute, consumer sentiment in the Beehive State fell 7.5% in August, going from 77.3 in July to 71.5.
"The latest consumer sentiment data highlights that Utahns continue to manage economic uncertainty," Phil Dean, chief economist at the Gardner Institute, said in a release.
Consumer sentiment is a statistical measurement of the overall health of the economy as determined by consumer opinion, taking into account people's feelings toward their current financial health, the health of the economy in the short term, and the prospects for longer-term economic growth, according to Investopedia. A higher consumer sentiment is considered good news for the economy.
A similar survey conducted by the University of Michigan revealed that consumer sentiment amongst Americans fell as a whole, though not quite as drastically as Utah's.
July's seasonally adjusted unemployment rate for Utah was 2.4%, with approximately 43,800 Utahns unemployed. The rate is lower than the national unemployment rate of 3.5%, according to the Utah Department of Workforce Services July employment summary.
"The post-COVID economic resilience remains the dominant picture of the Utah economy," said Department of Workforce Services' chief economist Mark Knold in the summary.
"The job market is still robust as job postings remain plentiful. The large excess of job postings above the long-term norm that we have been speaking about for the past two years has now subsided, but even returning to a 'normal' level of job postings is a healthy picture for the Utah job market. People still have a positive outlook toward the Utah labor market. The percentage of the state's working-age population that are active in the labor market is at its highest level in 14 years," Knold said.
Still, consumer sentiment is being impacted by rising interest rates affecting housing prices and home sales, as well as the prices Utahns see at the gas pump.
According to AAA data, the average price of gas in Utah is now $4.27 per gallon, higher than the current national average of $3.80.
In Salt Lake County — Utah's most populated county — the median price of single-family homes flatlined from May to June at $600,000, still 12% higher than when single-family home prices bottomed out in January at $535,700.
"Utah unemployment hovers slightly above all-time lows and labor force participation recently increased to the highest level in over a decade. But rising gas prices, interest rates, and housing prices contribute to economic uncertainty. Notably, even with this recent dip, Utah's consumer sentiment consistently remains above the U.S. overall," Dean said.
