Consumer optimism in Anchorage broke trend in the third quarter of 2016 and rose slightly to an overall neutral indicator of 50.3.
While the overall reading for the quarter was up 2.1 points compared to quarter two, the Personal Finance Confidence component, traditionally the strongest and least volatile component, decreased 3.8 points to 61.9.
“Seeing a dip in Personal Finance Confidence certainly tells us that industry layoffs and state cuts are having an increasing affect residents’ feelings of financial security,” said AEDC President and CEO Bill Popp. “Still, this number remains decidedly optimistic and on the right side of 50, so we can continue to count this figure as a positive.”
This quarter, Local Economy Confidence rebounded 1.5 points to 52.3 and Expectations for the Future, at its highest point this year, gained 5.4 points to 43.6. While the economy’s present situation is weighing heavily on residents, they are more positive than they have been in previous quarters this year.
“Though we are resting at a positive index of 50, residents still have concerns about the continued fiscal challenges,” said Lori McCaffrey, KeyBank’s Alaska market president. “It’s imperative that we secure a long-term solution to the state budget deficit for this to turn around.”