Utah consumer index holds steady in January

SALT LAKE CITY — Utah consumers held onto their relatively optimistic view of the local economy during January compared to the rest of the nation, according to a new report.

The Zions Bank Consumer Attitude Index for Utah declined slightly from the previous month, decreasing from 81.9 in December to 79.8 in January.

The state's index continued to significantly outpace the Conference Board's U.S. Consumer Confidence Index by nearly 19 points for the month. The national CCI decreased 3.7 points to 61.1. An index of 70.0 or below is indicative of slow economic growth.

Although consumer confidence was weighed down by lower job growth optimism, several positive indicators may prompt higher confidence in the coming months, said Randy Shumway — chief executive officer of the Salt Lake-based research firm The Cicero Group.

For example, Utah has had three months of consecutive decreases in the state unemployment rate, cheaper gasoline prices, improving state business conditions and a rebounding stock market — all of which have the potential to raise consumer confidence, he explained Tuesday during a news conference at The King's English Bookshop in Salt Lake City.

"Unemployment is low, economic activity is consistently growing and average prices are consistently growing," he said. "So there are a number of positive economic indicators that we are slowly but surely recovering from the deepest economic recession that most of us have ever weathered."

He said the national economy grew for the 10th consecutive quarter, reiterating the upward trend the country has experienced over the past two-plus years.

"Generally speaking, both the U.S. Consumer Confidence Index and Utah Consumer Attitude Index are improving," Shumway said. "We're higher than we were this time last year and we've seen a consistent increase over the last six months."

One local proprietor said that her business has been flourishing lately after what she described as "dire straits" during the recession.

"We were suffering along with everyone else," said Betsy Burton, co-owner of The King's English Bookshop. "We've been up and down all of last year, then in November we just seemed to take off."

Burton said sales increased approximately 20 percent during the three-month span, bolstered mostly by patrons' desire to "shop local."

"Business was wonderful!" she said. "People came in consistently saying they're doing their shopping locally on purpose."

She said the "shop local first" campaign launched by Salt Lake City has been very effective in raising awareness communitywide, helping businesses like hers remain viable.

Meanwhile, Shumway said current trends seem to indicate that Utah should sustain its current economic growth for the foreseeable future.

"We are seeing a slow, steady incremental improvement in overall consumer attitudes and consumer confidence," he said. "Improvements in productivity will assist in propelling businesses — moving forward — as we come out of this economic recovery."

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