Utah consumers are feeling pretty good about their economic situation — now and in the future. In fact, it’s the best they’ve ever felt, according to the Zions Bank Utah Consumer Attitude Index (CAI). The index rose 11.6 points to 129.5 in March, the highest level ever registered.
Meanwhile, the national Consumer Confidence Index, which correlates with the CAI, decreased 2.3 points to 127.7 in March and is 2.8 points higher than it was at this same time last year.
The Utah Present Situation Index increased 9.4 points to 134.2 while the Utah Expectations index rose 13 points to 126.3, representing record levels for two sub-indices of the CAI. The increases were largely fueled by improved consumer sentiment regarding the current labor market. According to the most recent CAI survey data, 58 percent of Utahns feel that jobs are “plentiful” in their area, up from 46 percent a year ago.
Historically, consumer sentiment statewide increases significantly in the month of March, as March and April are two of the strongest-performing months for stock indices nationwide. Optimism regarding the stock market is evident throughout the Beehive State, as 53 percent of Utahns feel a $1,000 investment in their 401(k) will be worth more than $1,000 one year from now, up from 49 percent in February.
“Utah’s robust job market, as well as seasonal changes in perceptions, has driven this month’s record-setting optimism in the statewide economy,” said Scott Anderson, Zions Bank president and CEO. “A strong labor market and strong savings growth have increased perceptions of personal wealth growth across the state.”
Continued faith in Utah’s robust job market has helped Utahns remain optimistic about the future trajectory of the economy, despite moderate inflation statewide. Utah currently has posted an annualized inflation rate above 3 percent in each of the past 10 months.
Despite some inflationary pressure, Utahns are more optimistic about the state government’s ability to enact good economic policy. Forty-nine percent of Utahns believe the state government is doing a “good job” of taking appropriate steps to improve the statewide economy, up from 46 percent in February.
Perceptions of the federal government however, have not improved, possibly due to President Trump’s recent announcement of sweeping tariffs on imported steel and aluminum. According to the most recent CAI survey data, only 24 percent of Utahns feel the federal government is doing a “good job” of taking appropriate steps to improve the nationwide economy, down from 28 percent in February.
“It’s reassuring to see that although Utahns have lost a bit of confidence in federal economic policy, they are still confident in local economic policy making,” said Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City research firm that does date collection and analysis for the CAI. “As policy-makers statewide continue to support innovation and good governance, I see no reason as to why the economy shouldn’t continue to grow.”