After a record-setting high in October, the Zions Bank Utah Consumer Attitude Index (CAI) remained steady in November, decreasing only slightly from 125.4 to 124.4. Consumer confidence in Utah has registered above 110 since June last year, indicating that Utahns continue to be very optimistic about current economic conditions within the state, as well as optimistic about the economy’s future trajectory.
The overall Utah CAI currently sits 9.7 points higher than its level 12 months ago. By comparison, the national Consumer Confidence Index increased 3.3 points to 129.5 in November and is 21.1 points higher than it was at this time last year.
Although the CAI dropped slightly in November, it remained above 120 for a second consecutive month for the first time in its history. Consumer attitudes within the state have largely been bolstered by positive perceptions of current and future labor market trends, according to the analysis published by Zions Bank. Utah currently boasts the second-fastest-growing labor market nationwide at 2.7 percent employment growth year over year, nearly double the national average of 1.4 percent.
The Zions Bank Present Situation Index, a sub-index of the CAI, decreased 2.5 points to 128.7, compared to the national Present Situation Index, which increased 1.9 points to 153.9. The Zions Bank Expectations Index increased 0.1 points to 121.5 and the national Expectations Index increased 4.3 points to 113.3.
“Utah is making a name for itself nationwide as a hotbed for innovation and creativity, especially within the technology sector,” said Scott Anderson, Zions Bank president and CEO. “Large technology companies like Adobe, eBay, Workday and Pluralsight are finding financial success in the state not only because of the highly skilled workers that come from Utah-based universities, but also from a statewide government that is willing to work with companies to ensure profitability and continued success.”
Further analysis of the CAI shows that Utahns are recognizing the importance of business-friendly public policy within the state, as perceptions of both the local and federal government’s efforts to improve the economy have risen year over year:
• Eighteen percent of Utahns believe the federal government is doing a good job of improving the overall U.S economy, up from 15 percent a year ago.
• Forty-seven percent of Utahns believe the state government is doing a good job of improving the statewide economy, up from 43 percent a year ago.
• Thirty-seven percent of Utahns believe the U.S economy will improve during the next 12 months, up from 26 percent in November of last year.
“The local government has done an excellent job of creating public policy initiatives that aim at creating a business-friendly environment statewide,” said Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City research firm that does data collection and analysis for the CAI.