California shoppers turned upbeat this month as a slow reopening of the state economy boosted consumer confidence by the biggest amount in nine years.
The Conference Board’s consumer confidence index for California was at 92.3 for September — a six-month high and up from a revised 66.8 a month earlier. That 38% one-month jump for the index and the largest increase since the post-Great Recession days of January 2011.
Gov. Gavin Newsom’s pandemic-fighting guidelines have allowed many businesses to reopen or broaden their availability in recent weeks. This has gotten more Californians back to work, though statewide unemployment is still down 1.7 million workers since February. That’s likely why this optimism yardstick is still far below the 115.9 reading of a year ago.
Now let’s look at two measures inside the statewide index …
1. Consumers’ view of current conditions dramatically improved. The index more than doubled to 82.9 from 40 a month earlier but is still depressed from 155 a year earlier.
2. Shoppers outlook grew brighter, scoring 98.6 for the month — that’s more optimistic than 84.6 in the previous month and 89.9 a year earlier.
The Conference Board also tracks seven other big states. For the month, overall confidence rose in six states while improving over the year in just one. Current conditions were better in five states for the month but fell in all over 12 months. Expectations rose in six states for the month and improved in five for the year.
Nationally, the U.S. consumer confidence index was 101.8 in the month vs. 86.3 a month earlier and down from 126.3 a year ago. U.S. shoppers’ view of current conditions increased in the month and was lower over 12 months. Meanwhile, consumers’ economic hopes nationwide were better compared to the previous month and more optimistic vs. a year earlier.
Note: As for two major purchases, the national view …
Plans to buy a home within six months? 6.4% this month vs. 6.2% a month earlier and 5.6% a year ago. Five-year average? 6.2%.
Car purchase plans? 11.8% this month vs. 10.1% a month earlier and 12.1% a year ago. Five-year average? 12.5%.
