The Greater Phoenix Chamber recently released a study that approaches and measures the Arizona economy from the viewpoint of Arizona consumers, according to a press release on The Chamber's web site.
The Arizona Business Index (ABI) is a survey conducted by OH Predictive Insights (OHPI) and is the first statewide index to focus on consumer indicators. It reflects how consumers perceive current economic conditions and their expectations for the future. The ABI also provides insight on how Arizonans currently view luxury purchases, the job market, economy, and personal credit card debt.
ABI utilizes the same questions and formula that the University of Michigan created for its Consumer Sentiment Index (MCSI). The baseline for ABI was conducted in March 2020 and is updated quarterly.
“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.”
According to the ABI, Arizonians had higher hopes and their future expectations were much more positive than average compared to the national average.
Housing confidence rose sharply and Arizonans felt very optimistic about the housing market in the third quarter. The number of people that believe now is a good time to purchase a home rose and more people have plans to buy a new home within the next 12-months. The younger generation shows higher confidence about purchasing a home than other age groups with more than 1 in 5 Millennials/Gen Z planning to buy a new home in the next twelve months.
Arizonans report feeling more satisfied and much more secure about their jobs in the third quarter. There was, however, a sharp decline in Sept. which the ABI will continue to monitor.
“Arizona saw a drop in confidence when the first spike in COVID-19 cases occurred, but as we moved further away from it, future expectations began to trend stronger than in the other states Arizona competes against,” says Mike Noble, chief of research for OHPI. “It will be interesting to see how the current spike will affect Arizona consumer confidence during Q4, and to see the results based on the political affiliation of respondents and the election results. Will those factors have an impact? And, how significant will that impact be?”
The full report can be found here.