Zions Bank report: Utah consumers go into new year with plenty of optimism

U.S. consumers are more confident about the future than they have been in 13 years. And Utahn’s are right there with them. The Zions Bank Utah Consumer Attitude Index (CAI) increased 5.1 points to 119.8 in December, accounting for almost half of the 10.9 points the index has climbed in the past year. The Utah increase resulted from a more positive outlook on the economy over the next six months.

The national Consumer Confidence Index increased 4.3 points from November to December and currently sits at 113.7.

“Record-breaking holiday spending and travel are fueling an already robust economy,” said Scott Anderson, president and CEO of Zions Bank. “Compounded with a positive consumer outlook on business conditions and employment, 2017 is poised to begin with significant economic momentum.”

The Present Situation Index, a sub-index of the CAI that measures how consumers feel about current economic conditions, decreased 1.2 points from November to December but remains 2.4 points higher than it was at this time a year earlier. Fifty-three percent of Utahns rate business conditions as good, a 2 percent decline from November, and 49 percent of Utahns believe jobs are plentiful, a 3 percent decline from November.

Expectations for the next six months increased 10.9 points in December due to a more positive outlook on future business conditions. Forty-two percent of Utahns think their household income will be higher in six months, compared to 38 percent in November, and 38 percent of Utahns think business conditions will be better in six months, up from 26 percent in November.

Other metrics regarding economic confidence, interest rates, consumer spending and gasoline prices include:

• Thirty-nine percent of consumers believe the U.S. economy will improve during the next 12 months, compared to 26 percent in November.

• Sixty-seven percent of Utahns think interest rates will go up in the next 12 months.

• Twenty-five percent of Utahns are likely to purchase a major household item in the next 60 days, compared to 33 percent in November.

• Sixty-seven percent of Utahns believe the price of gasoline will go up over the next 12 months.

“In spite of a rocky, divisive year of elections, Utahns’ confidence in the economy closed 2016 at its highest level since before the recession,” said Randy Shumway, CEO of Cicero Group, a market research firm based in Salt Lake City that does analysis and data collection for the CAI. “This optimism sets a favorable tone for businesses and consumers as we look ahead to the new year.”