Times get a little tougher, consumer confidence drops

Utah’s consumer sentiment fell in May, but not as much as the nation’s.

The Kem C. Gardner Policy Institute’s Survey of Utah Consumers in May resulted in an index of 69, down from 72.4 in April. Meanwhile, a University of Michigan index for the country slipped from 65.7 in April to 58.4 in May. The Gardner index for the nation fell from 60.9 in April to 57.9 in May.{mprestriction ids="1,3"}

“Not surprisingly, low sentiment readings continue to illustrate consumer frustration with ongoing inflation, which erodes the value of wage gains and purchasing power in general,” said Phil Dean, chief economist at the Gardner Institute. “Even so, this sizable consumer sentiment reduction through 2022 has yet to match with a corresponding reduction in economic activity.”

The Utah survey uses comparable questions to the University of Michigan’s survey. The questions measure residents’ views of present and future economic conditions. Both surveys include a random sample of consumers, including demographic questions to assess the representativeness of the sample.

Among breakout elements of the Gardner survey, 39 percent of surveyed Utahns in May said they are better off financially than a year ago, the same figure reported for April. But the percentage saying they are worse off than a year ago grew from 37 percent in April to 43 percent in May.

A smaller percentage of Utahns believe they will be better off financially a year from now, with the figure shrinking from 35 percent in April to 30 percent in May. Those expecting to be worse off grew from 25 percent to 27 percent.

The percentage of Utahns expecting business conditions for the nation to be better in the next year changed little, from 22 percent in April to 23 percent in May. Likewise, 68 percent in May said they will change for the worse, compared with 67 percent in April.

The percentage of Utahns expecting business conditions to improve in the next 12 months slipped to 39 percent, compared with 41 percent in April. Those expecting conditions to worsen grew from 43 percent in April to 48 percent in May.

The expectation for favorable conditions the next five years or so in Utah slipped from 47 percent in April to 46 percent in May. The percentage expecting unfavorable conditions grew from 41 percent in April to 43 percent in May.

While the percentage of Utahns expecting favorable conditions for the nation in the next five or so years slipped from 29 percent in April to 28 percent in May, the percentage expecting unfavorable conditions grew from 58 percent to 63 percent month to month.

Utahns’ sentiments about buying major household items changed little from April to May. Twenty-five percent in May said it was a good time for that type of purchase, but that compares with 24 percent in April. Sixty-six percent said it was a bad time, up from 65 percent in April.{/mprestriction}