Utahns are content with their current situations — thanks to a strong job market — but are less confident about their economic futures, based on data from the most recent Zions Bank Utah Consumer Attitude Index (CAI).
The index slipped 0.1 points, to 113.1, in August and is down 1.8 points from a year earlier. Meanwhile, the national Consumer Confidence Index was down 0.7 points, to 135.1, from July to August.
The Utah Present Situation Index climbed 7.8 points to 132.7, driven by Utahns’ increased confidence in job availability. In August, 65 percent of Utahns felt that jobs are plentiful, an increase of 4 percent over July’s figure and the second-highest number recorded since Zions Bank began measuring Utahns’ attitude about the economy in 2011.
The Utah Expectations Index fell 5.4 points to 100.1. Utahns feel more pessimistic about where business conditions and job availability will be in six months, with 6 percent fewer Utahns predicting business conditions will improve in Utah and 5 percent more Utahns thinking there will be fewer jobs available six months from now.
Despite pessimism about future business conditions and job availability, Utahns are optimistic about their own household earnings. Thirty-six percent feel that their household income will be higher six months from now. Only 4 percent feel that their income will be lower six months from now, which is 2 percent lower than July.
“Utahns continue to feel confident about their personal economic situation, while also expressing increasing uncertainty regarding the broader economy,” said Scott Anderson, Zions Bank president and CEO. “The fact that so many Utahns feel confident in their future household income shows that despite uncertainty about the future, they do not necessarily see conditions getting worse.”
One concern about the U.S. economy is the trade war with China.
“As we hear talk about the possibility of economic turbulence, it is important to remember the fundamentals. Job growth in Utah remains strong, as does income growth,” said Randy Shumway, chairman and partner of Cicero Group, which conducts analysis and data collection for the CAI. “Exogenous economic shocks may affect asset values, but at least for the near term they are not expected to affect the positive employment conditions here in Utah, which will buttress continued strong consumer spending in the state.”