Flagging Optimism Could Affect Retail
Now that the presidential election is over, California consumers are less optimistic about the future because of high gasoline prices, sluggish job creation and slow economic growth.
That was the conclusion of a recent survey done by the A. Gary Anderson Center for Economic Research at Chapman University in Orange, Calif.
The Anderson survey, taken every three months, showed that consumer confidence declined in the fourth quarter of 2004 after steady increases for six consecutive quarters.
“Job creation is weak. Gasoline prices have stayed high and consumers are piling up a whole bunch of debt,” said Esmael Adibi, director of the Anderson Center for Economic Research. “The combination is impacting the consumers’ sentiment.”
The index measuring current economic conditions decreased from 100.7 in the third quarter of 2004 to 94.8 in the fourth quarter. The index measuring future economic conditions declined from 118.9 in the third quarter to 108 in the fourth quarter.
The index measuring consumers’ planned spending on big ticket items, or durable goods such as automobiles and computers, also declined from 113.9 in the third quarter to 101.8 in the fourth quarter.
This means that over the next six months, people will be spending less money in stores. —Deborah Belgum
