Uncertainty is dominating Utahns’ thinking about the economy, according to results of the most recent Kem C. Gardner Policy Institute’s Survey of Utah Consumer Sentiment.
The consumer sentiment reading slipped from 76.3 in September to 69.1 in October, a decrease of 9.4 percent.
A similar survey by the University of Michigan found that sentiment fell 6 percent nationwide during the same period.
“Utah consumers appear to be uncertain about economic conditions,” said Phil Dean, chief economist at the Gardner Institute. “Relatively high interest rates and unaffordable housing must be balanced with a labor market that remains strong.”
Utah’s survey of consumer sentiment includes seven questions concerning current and expected future economic conditions. Five of the questions are identical to those included in the University of Michigan’s Survey of Consumer Sentiment in the U.S.
Survey results indicate that fewer Utahns feel they are better off than a year ago. The percentage believing that to be the case dipped from 41 percent in September to 29 percent in October. Meanwhile, those thinking they are worse off grew from 43 percent to 52 percent.
Utahns’ outlook for the future followed a similar track. Those thinking they will be better off financially a year from now fell from 30 percent to 28 percent, while those think they will be worse off grew from 20 percent in September to 25 percent in October.
Twenty-seven percent of Utahns surveyed believe it is a good time for people to buy major household items, down from 34 percent in September. Those believing it is a bad time for such purchases remained unchanged.
As for the nation as a whole, 18 percent foresee favorable business conditions over the next 12 months, down from 24 percent in September. The percentage with a worse economic outlook grew from 65 percent in September to 69 percent in October.
The longer-term economic outlook for the nation (the next five years) was favorable for 25 percent, down from 28 percent in September, while the “unfavorable” figure remained at 61 percent.
The full Gardner Institute report is available at https://gardner.utah.edu/.