As inflation has moderated over the past several weeks, Utahns are feeling a little better about their economic situation, according to Kem C. Gardner Institute’s Consumer Sentiment Survey.
Utah’s consumer sentiment index increased from 62.9 in July to 66.0 in August after three consecutive months of decline. the survey found.
Meanwhile, a similar survey by the University of Michigan during the same period found an increase in sentiment among Americans as a whole, rising from 51.5 to 58.2.
Even though prices remain high, overall inflation has moderated, as notably seen with falling gas prices. This moderation coincides with consumer sentiment improvement in both Utah and the U.S. As expected, Utahns remain more optimistic about Utah’s economy than are Americans across the country about the nation’s economy. Even with ongoing economic challenges such as inflation and rising interest rates, jobs remain plentiful in the state, with more than two job openings for every officially unemployed person, the Gardner Institute reported. Utah’s labor market and economy have outperformed the U.S. economy for a number of years. The survey suggests Utahns expect this trend to continue.
“Utahns remain more optimistic about Utah’s economy than are Americans across the country about the nation’s economy,” said Phil Dean, chief economist for the Gardner Institute. “Utah’s labor market and economy have outperformed the U.S. economy for many years. The survey suggests Utahns expect this trend to continue.”
The Utah Consumer Sentiment Survey uses comparable questions to the University of Michigan’s Survey of Consumers. These questions measure residents’ views of present and future economic conditions. Both surveys include a random sample of consumers, including demographic questions to assess the representativeness of the sample.
Questions comprising the Consumer Sentiment Survey includes five questions concerning current and expected future economic conditions. These questions are identical to those in the University of Michigan’s survey. Two of the questions refer to business or economic conditions in the country as a whole (rather than in one’s home state, for example). The Utah survey then supplements these two questions with alternative versions that refer to the state of Utah rather than the country as a whole. The questions measure residents’ views of the present economic situation and their expectation for the economy in the future.