Despite a decline in consumer sentiment across the United States in May, Utah remained steady, as reported by the Kem C. Gardner Policy Institute. However, confidence in the economy in the Beehive State still falls below other economic indicators.
Historically, a decrease in consumer sentiment is often accompanied by declines in retail sales or other markers of consumer activity. However, this trend has not been observed since the pandemic hit. Phil Dean, the chief economist of the Kem C. Gardner Policy Institute, noted that Utah tends to mirror the U.S. overall but at a higher level, leading to a more optimistic outlook among residents.
Doug Black, a Utah native who owns and operates various properties in the state, expressed optimism about Utah’s current state of affairs. He cited job growth, new housing developments, and an influx of people moving to the state as positive indicators. On the other hand, some individuals at a community pickleball tournament in Orem, like Howard Gomes, expressed less optimism. Gomes highlighted rising costs of living, particularly food and housing despite potential slowdown in inflation prices continue to rise and impacting consumer perceptions of the economy.
Dean acknowledged that fluctuations in consumer sentiment can be due to various factors such as higher prices for essentials like food and gasoline and said that potential interest rate cuts later this year or next year could lead to more economic normalization.
In conclusion, while Utah’s consumer sentiment remains steady compared to the rest of the country during May 2021- it is important for individuals with varying perspectives on different aspects of their lives within our economy – whether they are optimistic or pessimistic – to remain aware of these changes so they can make informed decisions about their financial future.
