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Chapman University Chapman University Digital Commons Anderson Center Press Releases A. Gary Anderson Center for Economic Research 4-9-2021 OC Consumer Sentiment Surges More Than 40% Anderson Center for Economic Research Lowe Institute of Political Economy Follow this and additional works at: https://digitalcommons.chapman.edu/anderson_center_press_releases OC Consumer Sentiment Surges More Than 40% Comments This scholarship is part of the Chapman University COVID-19 Archives.       A. Gary Anderson Center for Economic Research One University Drive, Orange, California 92866  (714) 997-6693  Chapman.edu   Lowe Institute of Political Economy Karen Diehl (310) 741-9097 karen@diehlcommunications.com    PRESS RELEASE OC CONSUMER SENTIMENT SURGES MORE THAN 40%  ORANGE, CA — The Chapman University Orange County Consumer Sentiment Index surged nearly 42 percent in the first quarter of 2021. The random survey of 500 OC residents rose from a value of 63.5 to 90.0. This is the largest move in the history of the sentiment index in terms of percent change or in terms of the change in the index value of the survey. As noted by Professor Marc Weidenmier of the Argyros School of Business and Economics at Chapman University, “It looks like we have turned the corner. It appears that the medical community and vaccinations are getting the upper hand on the coronavirus. The economy is opening up and people are going back to work. The positive trend should continue for the foreseeable future unless we are hit by another wave of the virus.”   All seven questions that make up the consumer sentiment index experienced large gains over the last quarter. With respect to finances next year, survey participants reported a 17.7 percent increase in sentiment. As for business conditions next year, sentiment rose 56.3 Chapman-CMC Orange County Consumer Sentiment Survey Results Page 2 April 9, 2021  percent. The effect of business conditions on the household for the current year and next year increased 53.7 and 29.5 percent, respectively. Business conditions compared to a year ago experienced a 322.3 percent increase, the largest increase in sentiment for any of the survey questions. The large rise in business conditions compared to last year is a big rebound for the measure that had dropped to the low value of 13.1. In terms of finding a new job, sentiment rose 36.6 percent. For the last question in the survey, participants expressed a 19.1 percent increase in sentiment about buying a car in the next year.                  Chapman-CMC Orange County Consumer Sentiment Survey Results Page 3 April 9, 2021  The demographic data shows large gains across the board. All income and employment groups experienced double digits gains in consumer sentiment. All age, gender, and ethnicity groups had sentiment gains in excess of 10 percent. For Hispanics, consumer sentiment increased more than 50 percent. Perhaps most notable is that Republican leaning survey respondents posted a 27.0 percent gain in consumer sentiment while Democrats participating in the survey recorded a 50.6 percent increase in sentiment. The fact that both Republicans and Democrats can agree that consumer sentiment is recovering quickly is remarkable given the high level of partisan tensions in the United States. Indeed, this is a great signal that OC is on the road to recovery.  The Chapman-CMC California Consumer Sentiment Index is a joint venture between the A. Gary Anderson Center for Economic Research at Chapman University and the Lowe Institute of Political Economy at Claremont McKenna College. The Index is constructed  from the results of a quarterly survey of a random sample of 2000 people stratified on the basis of age, gender, ethnicity, income, and zip code. The survey asks respondents seven questions concerning their current situation, perceived future prospects, and spending plans.       Chapman-CMC Orange County Consumer Sentiment Survey Results Page 4 April 9, 2021   ABOUT THE ANDERSON CENTER FOR ECONOMIC RESEARCH The A. Gary Anderson Center for Economic Research (ACER) was established in 1979 to provide data, facilities and support in order to encourage the faculty and students at Chapman University to engage in economic and business research of high quality, and to disseminate the results of this research to the community.  ANNUAL SCHEDULE OF CONFERENCES AND PRESS RELEASES JANUARY   Economic Forecast Conferences for the Inland      Empire  California Purchasing Managers Survey  Orange County Consumer Sentiment Survey  California Consumer Sentiment Survey     APRIL   California Purchasing Managers Survey  Orange County Consumer Sentiment Survey  California Consumer Sentiment Survey     JUNE   Economic Forecast Update Conference for the        U.S, California and Orange County     JULY   California Purchasing Managers Survey  Orange County Consumer Sentiment Survey  California Consumer Sentiment Survey     OCTOBER   California Purchasing Managers Survey  Orange County Consumer Sentiment Survey  California Consumer Sentiment Survey     DECEMBER   Economic Forecast Conference for the U.S.,       California and Orange County  

OC Consumer Sentiment Surges More Than 40%

https://digitalcommons.chapman.edu/cgi/viewcontent.cgi?article=1124&context=anderson_center_press_releases

OC Consumer Sentiment Surges More Than 40%

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