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Chapman University Chapman University Digital Commons Anderson Center Press Releases A. Gary Anderson Center for Economic Research 4-9-2021 California Consumer Sentiments Posts Record Increase of 37% Anderson Center for Economic Research Lowe Institute of Political Economy Follow this and additional works at: https://digitalcommons.chapman.edu/anderson_center_press_releases California Consumer Sentiments Posts Record Increase of 37% 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 CALIFORNIA CONSUMER SENTIMENT POSTS RECORD INCREASE OF 37%  ORANGE, CA — The Chapman University-Claremont McKenna College California Consumer Sentiment Index posted a record rise of 37.4 percent in the first quarter of 2021. The index is based on a random survey of 2,000 residents in California. The index rose from a value of 65.9 in the fourth quarter of 2020 to 90.6 by the end of March. Professor Marc Weidenmier of the Argyros School of Business and Economics at Chapman University said, “the large jump in California consumer sentiment over the last quarter sends a strong signal that the state economy is in recovery mode. It looks like the medical community and public health officials finally have the upper hand in their battle with the coronavirus. Businesses are opening up and people are going back to work. This trend should continue for the foreseeable future unless we see another wave of the virus.”    Chapman-CMC California Consumer Sentiment Survey Results Page 2 April 9, 2021  All seven questions that make up the baseline index recorded large gains in the first quarter of 2021. Survey respondents reported a 12.6 percent increase in their financial situation over the next year. As for business conditions next year, sentiment rose 48.3 percent. The impact of business conditions on the household in current and next year increased 59.0 percent and 21.0 percent, respectively. Business conditions compared to a year ago rose a whopping 195.0 percent, the largest rise in sentiment for any of the seven questions that make up the baseline index. Sentiment for finding a job over the next year recorded a 30.0 percent gain while sentiment for purchasing a car increased 26.4 percent.                 Chapman-CMC California Consumer Sentiment Survey Results Page 3 April 9, 2021  The demographic data also shows large gains in sentiment across different groups. Sentiment for all gender, age, and ethnicity groups increased 25 percent or more over the last quarter. All income groups, ranging from less than 25 thousand to more than 150 thousand dollars, also recorded at least a 25 percent increase in sentiment. Perhaps the most telling indicator is the sentiment responses provided by both Democrat and Republican leaning survey participants. In an era of partisan divide where Democrats and Republicans can agree on very little, both parties seem to agree that consumer sentiment is on the rebound in California. Democrats report a 44.7 percent increase in consumer sentiment compared to a 19.6 percent gain for Republicans.   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 California 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  

California Consumer Sentiments Posts Record Increase of 37%

https://digitalcommons.chapman.edu/cgi/viewcontent.cgi?article=1125&context=anderson_center_press_releases

California Consumer Sentiments Posts Record Increase of 37%

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