Utah’s consumer sentiment continued its recent downward trend in July, according to the Kem C. Gardner Policy Institute’s Survey of Utah Consumers. The Utah index fell to 62.9, compared to 64.4 in June.
“Consumer’s expectations about the economy can impact day-to-day purchasing behavior and thus economic cycles,” said Gardner Institute Chief Economist Phil Dean. “Concerns about high inflation, including fuel prices, continues to affect consumer sentiment in Utah. High fuel prices are a particularly salient price for consumers, although the prices have dropped in recent weeks. Emerging signals suggest low-income households face financial stress that is beginning to alter their purchasing behavior.”
A similar survey for the country as a whole, the University of Michigan’s Survey of Consumers, showed consumer sentiment rising slightly, increasing to 51.5 in July compared to 50.0 in June. This is the first month since the Gardner Institute began tracking consumer sentiment in October 2020 where the Utah index has fallen while national sentiment increased.
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.
The full results are available online at https://gardner.utah.edu/wp-content/uploads/ConsConf-Jul2022.pdf.