Utah consumers are more confident about their current economic situation than they have been since Zions Bank began recording such things. The Utah Present Situation Index, part of the Zions Bank Utah Consumer Attitude Index, jumped 10 points in September to 140.3. The hike represents the largest month-to-month increase since 2013 and left the sub-index at its highest point ever.
The overall Utah Consumer Attitude Index (CAI) increased 9.1 points to 124.1 in September. The year-over-year CAI edged up by 1.9 points. This marks the 28th consecutive month that the Utah CAI has exceeded 110, a level signaling overall positive consumer attitudes about the economy.
Meanwhile, the national Consumer Confidence Index increased 3.7 points to 138.4 in September.
Both the month-to-month and year-over-year increases in the Present Situation Index were almost entirely driven by strong sentiment about the present availability of jobs, with 64 percent of Utahns feeling that jobs are currently plentiful.
The Utah Expectations Index also had a notable month-to-month rise of 8.5 points to 113.3. Year-over-year, the Expectations Index has decreased 2.9 points. Considering the record favorability of Utahns’ present outlook, the dip in future expectations indicates that Utahns see things remaining stable, rather than getting significantly better. Those who believe the job market will continue to grow (26 percent) outnumber those who think job availability will shrink (14 percent) by a ratio of almost 2-to-1.
“We’ve seen that Utahns’ confidence in their investments overall has trended up since we began measuring consumer attitudes in 2011,” said Scott Anderson, Zions Bank president and CEO. “Now half of all Utahns feel it is likely or very likely that investments in a 401(k) will increase in value, versus 18 percent who feel that is unlikely. In a similar vein, Utahns have also become more and more confident that they will maintain their living standards into retirement. Both of these sentiments have helped contribute to the overall upward trend in the Utah CAI since we began the index.”
Utahns’ confidence in the economy is driven by three main things, according to index data: Utahns’ feelings about costs in general, their income and their investments, according to Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City research firm the provides data and analysis for the CAI.
“One of the interesting stories is the interplay between Utahns’ expectations of their income and of costs in general,” Shumway said. “Most Utahns believe that prices are going up, with 64 percent feeling that prices for consumer goods will increase in the next 12 months. But we’re also seeing that more and more Utahns are believing that their income will increase by more than the rate of inflation in the next two years. This translates to more positive attitudes about the economy and more consumer spending now and in the future.”