Things are looking up for Utah’s economy heading into 2024, according to the December 2023 Roadmap to Prosperity Economic Dashboard report released this week by the Salt Lake Chamber and Kem C. Gardner Policy Institute at the University of Utah.
“As we conclude a robust 2023, Utah’s economic landscape reflects strength and resilience. The surge in consumer confidence and steady employment growth signal a strong economy,” Derek Miller, president and CEO of the Salt Lake Chamber, said. “We are positioned well for continued success in 2024. Our economic outlook is bright.”
The dashboard focuses on information regarding the state’s economic condition, offering relevant information to Utah businesses. Updated every month, the dashboard presents key insights, monitors current and predictive metrics and conveys significant indicators to equip decision-makers with essential and up-to-date data, according to the Salt Lake Chamber’s website.
Data provided by the Salt Lake Chamber and Kem C. Gardner Policy Institute found three essential factors that highlight the December 2023 Roadmap.
Consumer sentiments rose
Consumer sentiment refers to the overall attitude of individuals toward the economy and their personal financial situation. The Economic Dashboard reported that Utahns expressed more hopefulness towards the economy as a state and nationwide at the end of 2023.
“Consumer sentiment jumped 8.4% while national sentiment increased 13.7% from November to December,” the economic dashboard found.
According to a Pew Research article that was published on Thursday, Americans outside of Utah are also having more positive perceptions about the current state of the economy.
“Americans’ views of the nation’s economy — while mostly stagnant for the past few years — are showing signs of improvement,” the article said. “Slightly more than a quarter (28%) rate economic conditions as excellent or good, a 9 percentage point increase from last April.”
However, the article added that although national consumer sentiment is showing upward trajectories, “the public is far less upbeat today than it was from 2018 through early 2020, during Donald Trump’s presidency and prior to the outbreak of thecoronavirus pandemic.”
Rise in employment growth
Job growth in Utah and across the U.S. saw an increase toward the end of 2023.
Earlier this month, a news release from the U.S. Bureau of Labor Statistics reported, “Total non-farm payroll employment increased by 216,000 in December, and the unemployment rate was unchanged at 3.7 percent. ... Employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs.”
According to the Utah Economic Dashboard, in November 2023, the majority of industries in Utah saw job growth while a few saw decline.
Industries with increased job change:
- Leisure/hospitality services — Up 6.2%.
- Information — Up 6.2%.
- Other services — Up 6.0%.
- Education/health services — up 3.7%.
- Government — Up 3.0%.
- Construction — Up 2.6%.
- Professional/business services — Up 1.0%.
- Financial activities — Up .6%.
- Manufacturing — Up .1%.
Industries with decreased job change:
- Trade/transportation/utilities — Down 1.2%.
- Natural resources — Down 1.0%.
“Utah’s economy remained remarkably resilient in 2023, buoyed by increased consumer sentiment, moderating inflation and historically strong job growth,” Natalie Gochnour, director of the Kem C. Gardner Policy Institute, said. “Looking ahead to 2024, some key questions remain, including whether inflation will continue downward, interest rate declines will follow suit and labor markets will remain tight.”
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Increase in airport passengers
Traveling to and from Salt Lake City has increased 5% from the previous year.
“Salt Lake City International Airport served 2.1 million passengers in November, a drop from July’s 2.5 million passenger peak,” per the economic dashboard. “Despite a decrease from summer numbers, November’s passenger count represents a 5% year-over growth rate.”
In fact, 2023 was a big year for the Salt Lake City International Airport as it broke its previous record of total passengers recorded in a 12-month fiscal year period.
“From July 2022 through June 2023, the number of passengers totaled 26,421,401, compared to the previous high of 26,203,976 in 2019,” according to Utah Business. “Perhaps the most surprising increase was in international travelers which jumped from 1,085,640 in FY ’19 to 1,327,241 in FY ’23.”
An increase in airport passengers can be a significant driver of economic growth due to its impact on various sectors and contributing to a more vibrant and prosperous economy for the state of Utah.
