Utah consumer sentiment steady in September, nationally not so much

Utah consumers expressed little change in their attitude about economic conditions in September, but nationally, things aren’t quite as rosy. 

Utah’s consumer sentiment rose a statistically insignificant 0.3 percent in September, according to the Zions Bank Consumer Sentiment Survey, conducted by the Kem C. Gardner Policy Institute at the University of Utah. This increase — from 79.9 in August to 80.1 in September — is within the survey’s margin of error. 

However, a similar survey conducted by the University of Michigan reported that sentiment fell 5.3 during September among Americans as a whole.

“Components of Utah’s consumer sentiment index changed little between August and September,” said Phil Dean, chief economist at the Gardner Institute. “However, expectations of the national economy over the next five years soured, declining from August to September.”

National consumer sentiment fell for a second straight month, hitting its lowest level since May, amid increasing economic concerns. The Michigan Consumer Sentiment Index was down 3.1 points, or 5.3 percent, to 55.1 in September. The latest reading was lower than the forecast of 55.4. Consumer sentiment has fallen by 21.4 percent (15 points) compared to a year ago.

“Consumers continue to express frustration over the persistence of high prices, with 44 percent spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,” said Joanne Hsu, director of surveys at the University of Michigan. “Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets.”

To put the national report in historical context, consumer sentiment is currently 34.6 percent below its average reading of 84.3, based on data dating back to 1978.

The Utah consumer confidence survey uses key questions from the University of Michigan’s Survey of Consumers. These questions measure residents’ views of the present economic situation and their expectations for the economy in the future. Data gathered from the key questions are used to create the consumer confidence index for Utah. Demographic questions are included in the questionnaire to allow for additional analysis of the data and to assess the representativeness of the sample.

The full results of the monthly Utah Consumer Sentiment survey can be accessed through the Gardner Institute website at gardner.utah.edu.