While consumers across America seem to be waning in their economic optimism, Utahns still think things are going well. The Zions Bank Utah Consumer Attitude Index (CAI) increased 0.8 points to 120.1 in October. The CAI is still down 0.4 percent from this time last year. Meanwhile, the national Consumer Confidence Index decreased 0.4 points to 125.9 in October.
The Utah Present Situation Index, a sub-index of the CAI, decreased 8.1 points to 131.4 points in October from September as slightly more Utahns were showing pessimism about the current state of business conditions and job availability. In October, 6 percent of Utahns felt that business conditions are bad, an increase of 2 percent since September, while 9 percent of Utahns felt jobs are hard to get, an increase of 1 percent since September. The Utah Present Situation Index is 0.4 points higher than October 2018.
In contrast, consumers are very confident about future economic conditions. The Utah Expectations Index jumped up 6.7 points to 112.6 in October from September. Utahns are notably more positive about prospective job availability and business conditions six months from now than they are about current conditions. In October, 31 percent of Utahns feel more jobs will be available in six months, an increase of 4 percent since September and, even more positively, only 13 percent of Utahns feel fewer jobs will be available in six months.
One of the driving forces behind Utahns’ positive sentiment regarding the future continues to be the strong job market and job growth in Utah. Consumer sentiment is largely driven by personal economic conditions and whether consumers feel their jobs and income are secure.
“Utah’s 12-month job growth is now at 3 percent,” said Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City research firm that does data collection and analysis for the CAI. “That’s twice the national rate of 1.4 percent. And even better, Utah has maintained positive job growth across every sector, from manufacturing to professional/business services, for several months. Strong job growth and low unemployment leads to strong wage growth for Utahns. So, the continued growth across Utah’s diverse economy continues to make Utahns feel that it can weather any choppy waters that come.”