Consumer confidence in Utah took a significant jump in June. The 3.3-point hike in the past month accounts for most of the 3.7 points that the Zions Bank Utah Consumer Attitude Index (CAI) has risen in the past year. The index sits at 115.2, up from 111.9 in May and 111.5 a year ago.
Consumer confidence in the state has registered above 110 since June last year, indicating that economic prosperity remains consistently high. By comparison, the national Consumer Confidence Index increased 1.3 points to 118.9 in June and is 7.4 points higher than it was at this same time last year.
“Consumers have maintained high levels of confidence in the statewide economy thanks to generally positive perspectives on economic and business activity in the state,” said Scott Anderson, president and CEO of Zions Bank. “All indicators continue to point to an economy that will maintain its expansion through the summer season, which will benefit local Utah businesses and consumers alike.”
The CAI’s jump resulted from steady, confident expectations for the economy, both for the current period and over the next six months:
• Fewer people think general business conditions are bad — down to 4 percent in June from 6 percent in May.
• More people believe that the prices for consumer goods in general will increase in the next 12 months — 65 percent, up from 63 percent in May.
• Confidence in the labor market remains high, as fewer people perceive jobs as currently hard to find — 10 percent in June, down from 12 percent in May.
Other metrics regarding economic confidence, interest rates, government economic policy and gasoline prices include:
• Forty-six percent of residents believe the state government is doing a good job of taking steps to improve Utah’s overall economy, compared to 49 percent in May.
• Twenty percent of Utahns think the federal government is doing a good job taking steps to improve the overall economy, down 4 percentage points from May.
• Thirty-seven percent of consumers believe the U.S. economy will improve during the next 12 months, compared to 47 percent in May.
• Forty-eight percent of Utahns think a $1,000 investment in their 401(k) will be worth more a year from now, compared to 52 percent in May.
“Perceptions of the overall economy within Utah continue to demonstrate strength,” said Randy Shumway, chairman and partner of Cicero Group, a market research firm based in Salt Lake City that provides analysis and data collection for the CAI. “As consumers remain positive about their economic futures, they will continue to invest in the statewide economy, increasing the number of jobs available in Utah and increasing the standard of living for many Utahns.”