Consumer sentiment in Utah remained stable in May, as per the latest data from the Kem C. Gardner Policy Institute, while the rest of the U.S. experienced a decline. Despite this, confidence in the economy among Utah residents lags behind other economic indicators. Phil Dean, the Chief Economist at the Kem C. Gardner Policy Institute, noted the historical correlation between consumer sentiment and declines in consumer activity or retail sales, which has not been the case since the pandemic began. In general, Utah tends to be more optimistic than the U.S. on average.
At a community pickleball tournament in Orem, Doug Black, a lifelong resident of Utah who owns and manages apartment complexes and mobile home communities, expressed his confidence in the state’s economic performance. He cited job growth, new home construction, and people moving to Utah as signs of prosperity. However, other participants at the tournament like Howard Gomes, who works in the tech industry, had a less positive outlook. Gomes highlighted the rising costs of food, housing, and living expenses, along with recent layoffs in the tech sector.
Dean explained that despite inflation slowing down, prices continue to rise, impacting consumer sentiment negatively. People’s memories of lower prices in the past can affect their perception of the economy, even if they are still purchasing goods at higher prices. He mentioned that there has been significant variation from the norm concerning confidence in the economy. Dean predicted the possibility of interest rate cuts later in the year or next year, suggesting that normalization might occur after these changes are implemented.