A slight drop how Utahns feel about their present situation combined with optimism about business and job prospects kept the Zions Bank Utah Consumer Attitude Index (CAI) unchanged from January to February at 117.9 points. In comparison, the national Consumer Confidence Index increased 6.5 points to 130.8 in February and is 14.7 points higher than it was a year ago.
February's expectations index increase was largely fueled by improved consumer sentiment regarding the future trajectory of general business conditions statewide, as well as the future trajectory of the labor market. According to the most recent CAI survey data, 36 percent of Utahns believe that general business conditions will be better in their area six months from now, up from 32 percent in January. Likewise, 38 percent of Utahns believe that more jobs will be available in their area six months from now, up from 30 percent in January.
Utahns are also more optimistic about their personal finances, with 32 percent indicating an expectation that their household incomes will increase by more than the rate of inflation over the next two years, up from 28 percent in January.
Although consumer sentiment remains highly positive across the state, the Zions Bank present situation index fell slightly from 125.2 in January to 124.8 in February. This slight decrease was offset by minor increases in the Zions Bank Expectations index which rose 0.2 points from 113.1 in January to 113.3 in February.
“Utahns appear to be very confident in the state’s robust job market,” said Scott Anderson, Zions Bank president and CEO. “Utah’s unemployment rate is at its lowest levels since early last year. As the statewide labor market continues to expand, I believe that the economy will be able to sustain the tremendous growth that we have witnessed in recent months.”
Growth within the labor market has helped Utahns to remain optimistic about the future trajectory of the economy, despite relatively high levels of inflation statewide. Utah currently has posted inflation above 3 percent in each of the past nine months.
Despite strong inflationary pressures, Utahns are more optimistic about efforts of local officials to improve the statewide economy and there is increasing optimism about the national economy as well:
• Forty-six percent of Utahns believe the state government is doing a good job of improving the overall economy in Utah, up from 41 percent in January.
• Twenty-eight percent of Utahns believe the federal government is doing a good job of improving the overall economy of the United States, up from 26 percent in January.
“With the business-friendly economic policies that our local government has instituted statewide, it’s no wonder why consumer attitudes remain high,” said Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City research firm that does data collection and analysis for the CAI. “As the government continues to facilitate business expansion and job growth, I expect consumer attitudes to move in tandem with the state’s economic growth.”