Despite an apparent waning of economic confidence across the U.S., Utahns continue to believe that things are pretty good. The Zions Bank Utah Consumer Attitude Index (CAI) increased a strong 2.4 points to 115.6 in June. Year over year, the CAI has risen 3.8 points since June 2018. By comparison, the national Consumer Confidence Index decreased 9.8 points to 121.5 during June.
The Utah Present Situation Index, a sub-index of the CAI, rose 2.4 points to 128.5 in June, 1.7 points higher than in June 2018. Both the month-to-month and year-over-year increases were due to Utahns’ strengthening confidence in job availability.
In June, 66 percent of Utahns believed that jobs are plentiful, the highest point ever recorded since Zions Bank began measuring Utahns’ economic sentiment in January 2011. The current level of job optimism is 6 percent higher than in May and 7 percent higher than in June 2018. Utahns’ confidence in current general business conditions is at the three-year average, with 59 percent feeling conditions are good.
The Utah Expectations Index increased 2.1 points to 107.0, a jump of 5.1 points since June 2018. Job and income positivity are the leading causes of Utahns’ rising expectations. Thirty-six percent of Utahns believe their household income will increase within the next six months, 6 percent more than last year. Additionally, fewer Utahns are pessimistic about job availability prospects, with only 12 percent believing that fewer jobs will be available in the next six months, a drop of 4 percent from June 2018.
Utahns feel that the availability of affordable housing has improved slightly since last year. Fewer Utahns are spending large portions of their income on housing. Twenty-seven percent of Utahns report they spend 40 percent or more of their monthly income on housing, down 2 percent since last year and 19 percent spend 50 percent or more, also down 2 percent since last year.
Though the affordability of housing appears to be improving, Utahns feel about the same about the supply of housing as they did last year. The percentage of Utahns who feel that housing within their area and price range is readily available has remained essentially unchanged at 34 percent. Still, new housing developments are drawing Utahns’ attention. Twenty-one percent of Utahns have considered moving into new housing developments emerging across Utah.
“There are many moving parts when it comes to supply meeting demand for housing,” said Randy Shumway, chairman and partner of Cicero Group, a Salt Lake City consulting firm that does data collection and analysis for the CAI. “Utah’s economic boom has brought more high-paying jobs to Utah and raised many Utahns’ incomes and, therefore, the price they’re willing to pay for housing. But supply constraints such as land availability and city development limitations make it difficult to match supply and demand in the near term.”