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Californians Feeling a Little Rosier Started by Mary Williams - Posted August 27, 2010 11:16am

Californians Feeling a Little Rosier

August 27th, 2010 by Mary Ann Milbourn

Californians are feeling a little better about the economy now, although their optimism about the future has dimmed, according to Chapman University's August consumer confidence survey.

The school's California Composite Index of Consumer Confidence, conducted the first three weeks of August, rose to 84.2 this month from 82.7 in May — the fourth consecutive increase in the index.
That's an improvement, but any reading below 100 indicates there are more pessimists than optimists, said Chapman economist Esmael Adibi, who oversees the survey.

Consumers appeared confused about the outlook.  They were feeling better about conditions now, with the index rising to 71.9 in August from 66 in May.

But they aren't so sure about the future, with the index declining from 105.1 in May to 100.1 this month.

Those surveyed showed an uptick in plans for buying big-ticket items from 71.4 in May to 77 in August, but that's still well below a pace for strong economic growth.

Adibi said the results may seem at odds with the rash of bad economic news that's come out and suggested it could be the timing.  The survey was cut off Aug. 20 before the stock market swoon last week and a series disappointing reports about manufacturing and housing.
He said they may also be feeling better simply because last year was so bad.

"Those who have jobs don't anticipate huge layoffs," he said.  "In a way, you could judge the current conditions as better than it was a quarter ago or a year ago."