If consumer confidence in California means anything, this year’s economic fortunes might be an improvement over 2010.
Half of Californians expect both the state and national economies to improve this year, according to the latest quarterly California Pulse survey by Citi, the financial services company.
That’s a sharp contrast from past Citi surveys, when around 70 percent were skeptical about the economy.
In the latest survey, released today, 39 percent say they expect this year will be similar to 2010, and only 8 percent believe it will be worse. When asked about conditions over the next 12 months, 64 percent of respondents said they expect their personal financial situations to improve, and 55 percent say both job opportunities and the state economy will be better.
Even with those hopes, Californians apparently see little tangible evidence of economic improvement right now. Consequently, about 58 percent said they continue to cut back on spending, and 57 percent plan to save and invest more of their money.
“Our survey continues to reflect the resiliency of California and its residents,” said Rebecca Macieira-Kaufmann, president of Citibank California. “The findings show optimism and hope for the future, along with cautious behavior in the present, as most Californians remain realistic about the current environment but look forward to a better 2011 and beyond.”
Other findings include:
• 91 percent call the current California economy fair or poor.
• 87 percent rate current job opportunities in California fair or poor.
• 48 percent say 2011 will be a good time to buy a home; 47 percent say buyers should wait to see what happens to home prices.
• 45 percent expect real estate prices to remain flat in 2011; 28 percent believe prices will increase, and 23 percent believe they will fall.
• 19 percent plan to travel more in 2011 than in 2010.
The survey also found that California women are more conservative than men when it comes to spending.
For example, 41 percent of California males said the current environment is a good time to buy big-ticket items – including motor vehicles and televisions – but only 29 percent of females agreed.
The latest California Pulse survey was conducted by phone Dec. 17-23 among a random sample of 1,200 Californians ages 18 and older. Citi said the margin of error is approximately plus or minus 3 percentage points.
New York-based Citi has approximately 200 million customer accounts and does business in more than 160 countries.
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