Here’s What Consumers Think About the Health of Arizona’s Economy

Article originally posted on AZ Big Media on November 15, 2020

The Greater Phoenix Chamber recently released the Arizona Business Index™ (ABI™), powered by OH Predictive Insights (OHPI).  The study measures and interprets the health of the Arizona economy from the perspective of the Arizona consumer. The Index reflects consumers’ perceptions of both current economic conditions and future expectations. In addition to consumer sentiment, the ABI™ provides insight into current public opinion regarding luxury purchases like housing and automobiles, the job market, economy, and personal credit card debt of Arizonans.

ABI™ is the first statewide index to focus on consumer indicators. ABI™ uses the same questions and formula created by the University of Michigan for its Consumer Sentiment Index (MCSI). The baseline of ABI™ was conducted in March 2020 and is updated quarterly.

Q3 Key Highlights:

• Consumer Sentiment Remains the Same – While the Q3 Consumer Sentiment trends up monthly during Q3, overall it remains the same from Q2 to Q3

• Housing Confidence Rose Sharply – Arizonans felt very optimistic about the housing market throughout Q3

• Job Satisfaction and Security Increase – Arizonans are enjoying their work as job satisfaction and job security levels rose six points back to pre-pandemic levels

“The Arizona Business Index will be a valuable tool for businesses as Arizona moves into economic recovery,” said Todd Sanders, president & CEO of the Chamber. “Understanding consumer sentiment throughout the state and across demographics will allow business leaders to make informed decisions that will allow their companies to grow and adapt to the quickly changing landscape.”

Arizonans’ future expectation is much more positive than the national future expectation. The MCSI Future Index decreased 6.4 points to 65.9 and rebounded to 75.6 in September. However, Arizona rebounded stronger, growing over 12% from July to September, while California grew 7.3%, Florida grew 6.7% and Texas grew 5.47%.

The Housing Index rose 48.3 points from July to September. More people believe now is a good time for a house purchase (+7.3%) and more people have a plan to buy a new home in the next 12-months (+2.1%). The younger generation shows a higher confidence about purchasing a home than the general public. More than 1 in 5 Millennials/Gen Z plan to buy a new home in the next twelve months. Another 28% of this younger generation is unsure whether or not they will buy a new home in the next twelve months. Hispanic (17%) and single persons (17%) are also high in their home purchase intentions, compared with others.

Find Complete Article Here: