Optimism of Utah consumer wanes slightly

Following a significant jump in December, the index that shows consumers’ attitudes toward their economic situation ticked back down in January. The Zions Bank Utah Consumer Attitude Index (CAI) declined 2.3 points to 117.5 in January after a 5.1 percent hike in December. The decrease resulted from a slightly less positive outlook on the current economy and the economy over the next six months.

The CAI remains 11.8 points higher than its level 12 months ago. By comparison, the national Consumer Confidence Index decreased 1.5 points from December to January and currently sits at 111.8.

“Utahns are more confident in the economy than they have been since before the recession,” said Scott Anderson, president and CEO of Zions Bank. “With businesses and employment growing at healthy clips, Utah’s economy is headed in the right direction.”

The Present Situation Index, a sub-index of the CAI that measures how consumers feel about current economic conditions, decreased 1.9 points in January but remains 10.0 points higher than it was at this time last year.

Highlights from the index include:

• Fifty-nine percent of Utahns rate business conditions as good, a 6 percent increase over december.

• Fifty-one percent of Utahns believe jobs are plentiful, a 2 percent increase from December. 

• Expectations for the next six months decreased 2.5 points in January due to a slightly less positive outlook on future business conditions.

• Forty-one percent of Utahns think their household income will be higher in six months, compared to 42 percent in December.

• Forty-one percent of Utahns think business conditions will be better in six months, up from 38 percent in December.

• Forty percent of Utahns believe there will be more jobs in their area in six months, compared to 30 percent in December.

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

• Forty-five percent of consumers believe the U.S. economy will improve during the next 12 months, compared to 39 percent in December.

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

• Thirty percent of Utahns are likely to purchase a major household item in the next 60 days, compared to 25 percent in December.

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