Utah economy holding steady, sentiment increasing despite challenges

SALT LAKE CITY — By and large, Utah's economy has remained steady throughout the summer and recent survey results signal increased consumer optimism may be on the horizon.

Employment data released Friday by the Utah Department of Workforce Services shows that over the past year, non-farm payroll employment increased by 1.4%, with the state's economy adding a cumulative 25,200 jobs.

In the unemployment realm, July's seasonally adjusted unemployment rate was estimated at 3.6%, unchanged from June.

That amounts to 64,800 Utahns without employment.

Still, Utah's unemployment numbers are better than the U.S. as a whole, which had a 4.1% unemployment rate in July.

"Utah's labor market continues to show resilience through robust job growth and low unemployment," Ben Crabb, chief economist with the Department of Workforce Services, said in a statement. "Even as constrained hiring rates and slowing labor force growth present clear headwinds, employers across major industrial sectors continue to expand payrolls."

Utahns also feel better about their economic outlooks than the rest of the country.

According to the Zions Bank Consumer Sentiment survey, Utah's consumer sentiment rose 1.8% in July, coming in at 72.7 on the index.

The increase marked the second consecutive month of small gains in sentiment, following a sharp decline in April and a modest decrease in May. In stark contrast, U.S. consumer sentiment in July was measured at 55.2 — well below Utah's.

Despite the recent uptick for the Beehive State, both Utah and U.S. sentiment remain 7.2% and 10.5% below their respective levels from one year ago.

One explanation could be prices at the pump.

As of Friday, AAA data shows the price for a gallon of regular gas ($4.37) is over a dollar more expensive than it was a year ago and higher than the current national rate of $4.11.

One explanation for Utah's recent sentiment bump, according to the survey, could have to do with what's perceived to be ahead, as the survey showed Utah's one-year financial outlook index increased from 102 in June to 111 in July, reflecting increased optimism among Utahns about their future personal financial position.

"People have more optimism about the future as they adjust to the current economic situation and as the negative impacts of economic shocks start to wane. The consumer and the economy remain resilient," Zion's Bank chief economist Robert Spendlove said in a statement.

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