Study Finds California Consumers Optimistic
California consumers haven’t been this upbeat in almost two years.
A recent survey by Chapman University in Orange, Calif., shows the California Consumer Sentiment Index increased to 99.7 in the first quarter of 2004, the highest it has been in almost two years. That’s up slightly from the fourth quarter of 2003, when the index was 96.8.
The reasons? Having actor Arnold Schwarzenegger as governor has helped, as has the general feeling that the state budget crisis is being handled without raising taxes. The repeal of the vehicle license fee is another plus. Consumers also believe the U.S. economy as a whole is improving.
While the present economic situation seems bright, consumers surveyed were a little apprehensive about the future. The Future Economic Condition Index dropped to 104.4 in the first quarter of 2004, down from 112.3 in the fourth quarter of 2003. Consumers worry that new jobs are not being created quickly enough or are moving overseas.
The index that measures consumer spending on big-ticket items also declined in the first quarter of 2004 to 100.2 after reaching 102 in the fourth quarter of 2003. The decline means consumers will be buying fewer big-ticket items during the next six months. —Deborah Belgum
