Survey: State's consumers more upbeat about economy

Newsday.com
August 3, 2004

STORRS, Conn. -- Connecticut consumers are feeling more upbeat about the economy, but are pessimistic about the strength of the state's job market, a survey has found.

Confidence levels are the highest since April 2002, bouncing back 12 percent from a decline in the last quarterly survey released in April by economists at the University of Connecticut, according to the Webster Consumer Confidence Index released Monday.

The Connecticut index stands at 105.4, compared with 94 in April. The national level is slightly higher at 106.1.

Statewide, respondents were more pessimistic about job prospects than the rest of the country. About 76 percent of those surveyed said jobs were not so plentiful or hard to get, compared with 70 percent nationwide.

James Moor, an editor of the Connecticut Quarterly, published by UConn, said companies generally put productivity gains into growth and profits first.

"What Connecticut residents are saying is, 'Jobs haven't come yet, but they're going to,"' he said.

Consumer confidence is a closely watched indicator of consumer spending, which comprises about two-thirds of the nation's economic activity. The level of confidence is based on what consumers hear, read and observe about the business and job climate.

Nicholas Perna, economic adviser to Webster Bank, said the numbers show increasing optimism, despite concerns about the job market and uncertainties such as the inflation and fuel prices.

The state index is based on a random survey of 501 residents between July 8 and 14.

The consumer confidence index, based on quarterly surveys funded by Webster Bank, is compiled by UConn's Center for Economic Analysis. The survey has a margin of sampling error of plus or minus 4 percentage points.

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