Despite a minor dip in July, the Zions Bank Utah Consumer Attitude Index (CAI) remained statistically flat, indicating a continued confidence among Utah consumers in their economic outlook. The CAI dropped 1.0 point from 115.2 in June to 114.2 in July. Consumer confidence in Utah has registered above 110 since July last year, indicating that Utahns remain quite optimistic about the current economic trajectory.
The overall CAI currently sits 3.8 points higher than its level 12 months ago. By comparison, the national Consumer Confidence Index increased 3.8 points to 121.1 in July and is 24.4 points higher than it was at this same time last year.
Utahns’ confidence in the economy is consistent with independent reports of economic prosperity. Utah was recently ranked the third-best economy within the country, according to WalletHub, which was largely due to Utah’s high GDP growth, large amount of startup activity and significant wage increases in nonfarm payrolls. In a similar report, WalletHub also ranked Utah’s job market as ninth in the nation.
“Utah’s economy is repeatedly highlighted in national studies as being dynamic, active, and supportive of growth,” said Scott Anderson, president and CEO of Zions Bank. “This continues to drive positive economic success, which in turn generates strong consumer confidence. As Utah’s economic outlook continues to remain positive, I expect consumers to feel confident that their investments in the local economy will continue to pay dividends well into the future.”
Generally, Utah consumer perceptions have remained steady, both for the current period and over the next six months:
• About the same percentage of people as last month (60 percent) think general business conditions are good in their area.
• More people believe that jobs will be available in their area in the next six months — 32 percent in July, up from 29 percent in June.
• More people believe that their household incomes will increase in the next six months — 38 percent in July, up from 33 percent in June.
• Fewer people believe that business conditions will be better in their area six months from now — 29 percent in July, down from 33 percent in June.
Other metrics regarding economic confidence have also generally remained steady, including:
• Forty-six percent of residents believe the Utah state government is doing a good job of taking steps to improve Utah’s overall economy, which is unchanged from June.
• Seventy-one percent of residents believe that interest rates will rise during the next 12 months, which represents no change from June.
• Sixteen percent of Utahns think the federal government is doing a good job taking steps to improve the overall economy, down four percentage points from June.
• Forty percent of consumers believe the U.S. economy will improve during the next 12 months, compared to 37 percent in June.
• Fifty percent of Utahns think a $1,000 investment in their 401(k) will be worth more a year from now, compared to 48 percent in June.
“The labor market has shown tremendous growth and potential in Utah,” said Randy Shumway, chairman and partner of Cicero Group, a market research firm in Salt Lake City that does analysis and data collection for the CAI. “As people become aware of the attractive wage to cost-of-living ratio in Utah, we should see continued in-flows of both labor and job opportunities as businesses and individuals invest in the business-friendly economy.”