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Show Page 8 The Ogden Valley news Volume XXIII Issue XVIII March 1, 2016 Utah Consumer Attitude Index Rises Slightly as Confidence in Current Conditions Remains Cautious The Zions Bank Utah Consumer Attitude Index (CAI) increased 0.1 point to 105.8 in February. Increasingly positive perspectives regarding the present circumstances of the economy led to this slight escalation, but were counteracted by dipping expectations for the future. The CAI currently sits 0.8 points lower than its level from 12 months ago. In comparison, the national Consumer Confidence Index® decreased 5.6 points from January to February and currently sits at 92.2. Expectations for the next six months decreased due to a more negative outlook on business conditions, future job availability, and income situations. Compared to January, fewer Utahns think business conditions in their area will be better in six months, falling from 30 percent to 25 percent in February. Twenty-four percent of Utahns think there will be more jobs available in their area six months from now—a five-point decline since last month. In line with this expectation for fewer job opportunities, 34 percent of Utahns expect their household income to be higher six months from now—a 2 percent decline since January. The Present Situation Index, the subindex of the CAI that measures how consumers feel about current economic conditions, has risen 4.4 points since this time last year. Fifty-four percent of Utahns rate general business conditions in their area as good— a 6 percent increase since last month and a 4 percent increase since last year. Forty-six percent of Utahns describe available jobs in their area as plentiful, a 5 percent increase since last month, and a 10 percent increase since last year. Gas prices seem to be stabilizing as the global glut of crude oil has slowed and refineries have cut production while preparing for seasonal maintenance. The average price in Utah stands at $1.74, while the national average has fallen to $1.71 per gallon. Most consumers expect gasoline prices to bounce back and rise over the next 12 months: sixty-seven percent say gasoline prices will increase. The average expected gasoline price increase is 66 cents per gallon. Only 12 percent of Utahns expect gasoline prices to go down over the next year, and the average estimated decline is 36 cents. These expectations come as oil prices, which have fallen to historic lows, seem poised for a comeback as major OPEC leaders agreed to freeze output last week. Current Brent crude oil futures are trading for about $34 per barrel, compared to $67 a year ago. Following a rocky start for the year across major stock indexes, consumer opinions regarding major economic indicators remain mixed. While 66 percent of Utahns believe interest rates for borrowing money will rise during the next 12 months, this represents a 6 percent decrease since January. Similarly, the percentage of Utahns who believe prices for consumer goods will increase fell from 68 percent to 62 percent this month. Still, 32 percent of consumers expect $1,000 invested in their 401(k) to be worth more than $1,000 a year from now, compared to 31 percent last month. With 28 percent of Utahns expecting their household income to increase by more than the rate of inflation during the next two years—a 4 percent increase since last month— many consumers expect their spending power to increase in the future. Market forces can have a significant impact on consumer-level spending decisions. Perhaps due to low oil and consumer goods prices, 29 percent of Utahns are likely to purchase a major household item in the next 60 days, a 4 percent increase from last month. Furthermore, 38 percent of Utahns believe it is likely they will be able to retire and maintain their living standards, a 2 percent increase since January, and only 5 percent believe they are likely to lose their jobs, suggesting confidence in personal finance and employment increased this month. As national attention turns toward the candidates running for office this fall, satisfaction with the steps taken by the federal government to improve the overall economy of the U.S. is up slightly this month, with 13 percent of Utahns indicating belief that the federal government is doing a good job compared to 11 percent last month. Approval of the state government is significantly higher, with 40 percent of Utahns saying the state is doing a good job improving the overall state economy, but this represents a 1 percent decrease since last month. “Despite the grim portrait painted by the stock market’s opening weeks of 2015, consumer confidence remains positive,” said Scott Anderson, president and CEO of Zions Bank. “As consumers bear in mind the inevitability of such market corrections, their confidence in the economic situation is accurately and largely unaffected, particularly here in Utah where the economy is so healthy.” Zions Bank provides the CAI as a free resource to the communities of Utah. The monthly CAI summary reports are released at a monthly press conference, coinciding with The Conference Board’s national CCI release date. The reports are available online at <www.zionsbank.com/cai> Analysis and data collection for the CAI are done by the Cicero Group, a market research firm based in SLC. The March CAI will be released during a press conference at a local business at 10:30 a.m. on Mar. 29, 2016. Zions Bank, a division of ZB, N.A., is Utah’s oldest financial institution and is the only local bank with a statewide distribution of financial centers, operating 100 full-service centers. Additional information is available at <www.zionsbank.com> Seven Mistakes That Can Undermine Your Retirement Savings Even with thorough planning, retirement more travel and activities. Later, you may slow savings can be decimated by job loss, divorce, or death, but just as much damage can be done by subtle mistakes. Below are seven that can prevent investors from reaching their goals: 1. Not having a plan – Participating in your retirement plan at work and opening an IRA don’t count. Smart savers determine what they’ll need, define a savings goal, and identify a plan to reach it by focusing on asset allocation. 2. Holding concentrated positions – Some investors accumulate a large position in their employer’s stock only to see a big downturn just before retirement. Selling concentrated positions before retirement can help. Set a target for how much you need to sell, identify a date to reach that target, and then regularly sell. 3. Investing too little in stocks – Whether due to the rule of thumb (100 minus your age is your percentage allocation to stock) or just fear, may cause many to end up underinvesting in equities. 4. Being unrealistic – Don’t overestimate potential return or underestimate spending. Many spend more during “the go-go years” on down – “the slow-go years,” before reaching “the no-go years.” Honest budgeting accounts for levels of spending throughout retirement. 5. Being too generous – While saying “no” is hard, you don’t want to blow retirement funds by being too generous with your adult children. Think about how much you can realistically contribute toward the down payment on a house, a lavish wedding, or paying for recurring expenses like insurance. 6. Having more house than you need – Do you really need four bedrooms when the kids move out? Many find it’s nice to retire without the expense of a large home. Some plan their retirement to coincide with paying off their mortgage. 7. Underestimating health care – Supplemental policies can be expensive, but it’s important to budget for adequate coverage to insure against a costlier risk. Note: Tim Ludlum is a Liberty resident and Financial Advisor at the Salt Lake office of Robert W. Baird & Co., member SIPC. He can be reached at 801-869-3875 or <tludlum@rwbaird.com> Weber Area 911 Dispatch Launches Text-to-911 Service Weber Area 911 Dispatch has announced message. the launch of text-to-911 service in Weber and Morgan Counties. Text-to-911 service makes it possible for those in need of emergency assistance to send a text message to 9-1-1. This service will be especially helpful in cases when a caller cannot communicate verbally due to hearing or speech impairment, or in cases when a crime is in process, the caller is facing domestic abuse, the caller is injured and cannot speak, or in other scenarios where a voice call to 9-1-1 is not possible. Weber Area 911 Dispatch has been working with national cell phone carriers since June 2015 to enable the service for Weber and Morgan Counties, and was the first 911 Center in the State of Utah to receive a Text-to-911 With the launch of text-to-911, it is important to remind the public that you should always call if you can; text if you can’t. Calling 9-1-1 provides more thorough and efficient communication. Abusing 9-1-1 services, whether through text or call, is a serious offense and can result in a fine and potential jail time. You should only contact 9-1-1 to save a life, stop a crime, or to report a fire. For all other non-emergency situations, citizens should contact the non-emergency number or visit 911.utah.gov for a list of resources and appropriate contacts. Weber Area 911 Dispatch is implementing text-to-9-1-1 service as part of a nationwide initiative by the 9-1-1 industry, wireless carriers, and the FCC to make this service available to the public. Text-to-911 FAQs What is Text-to-9-1-1? Text-to-9-1-1 is the ability to send text messages to local 9-1-1 call centers to notify operators of an emergency. A limited amount of caller data is automatically provided to the call centers, such as the caller’s location, which may be only approximate if the call is placed from a wireless phone or a large, multi-unit building. What are the benefits of text-to-9-1-1? There are many significant benefits to the public, especially in cases when the caller cannot communicate verbally. For example, textto-911 will be very useful to the approximately 270 thousand Utahns who are hard of hearing, deaf, or speech-impaired. Text-to-911 may also help in situations when a crime is in process; the caller is facing domestic abuse; the caller is injured and cannot speak; or other scenarios where a voice call to 9-1-1 is not possible. When will text-to-9-1-1 be broadly available in Utah? Under a historic agreement reached in December 2012 between NENA, the “Big 4” wireless carriers (Verizon, AT&T, Sprint, and T-Mobile), and the Association of Public-Safety Communications Officials TEXT-TO-911 cont. on page 10 |