Mass Insight Consumer Confidence Index at Highest Level Since 2007

BOSTON, Feb. 28, 2012 /PRNewswire/ -- As they enter the new year, Massachusetts consumers are feeling the most optimistic about the state's economy in more than four years according to the latest Consumer Confidence Index from Mass Insight.  Results from the firm's first quarter survey for 2012 showed a 20 point increase over the fourth quarter of 2011, surging from 64 to 84.

The quarterly Massachusetts Consumer Confidence Index is based on the national Conference Board Index which is scaled to a 1985 base of 100 and varies above and below 100. If the Index is less than 100, respondents are more negative than positive.  The first quarter 2012 survey results were gathered from January 31 to February 4, 2012.

"This is the largest increase in consumer confidence that we've seen since 2009, and it's at the highest overall level since July 2007," said William H. Guenther, President of Mass Insight. "Increases in both current and future expectations were responsible for this quarter's dramatic upturn. If economic conditions continue to improve, this could be the turning point in attitudes among Massachusetts residents."

Optimism on future expectations fueled most of the surge, rising 27 points to a score of 118 – up from the fourth quarter 2011 level of 91. Optimism on current conditions also rose substantially, by ten points to 34 from 24 in the fourth quarter of 2011, although consumers remain concerned about current conditions.

Perceptions of the job market remained negative, with over 50% of consumers stating jobs are "hard to get."  Survey respondents were more optimistic about the availability of jobs in the future with 37 percent saying they thought there would be more jobs in the next six months – up 14 percent since last quarter.

Guenther noted, "Massachusetts consumer confidence is about 20 percent higher than national consumer confidence.  With growing confidence in the state's labor market and business conditions, we are recovering more quickly than most of the country from the economic downturn of the last three years."

The Massachusetts Consumer Confidence Index is published quarterly by Mass Insight and is modeled on the national Conference Board Index. The Mass Insight Index is adjusted to the Conference Board scale using a constant factor.  In past years, the Conference Board Index has ranged from 145 in January 2000 to 47 in February 1992. The survey on which the Massachusetts Index is based is conducted for Mass Insight by Opinion Dynamics Corporation. This survey consists of telephone interviews with 500 adult residents of Massachusetts.

Mass Insight Global Partnerships, founded in 1989, is a Boston-based consulting and research firm that builds strategic pre-competitive alliances between higher education, industry and government, both regionally and globally. Mass Insight organizes collaborative, performance-based leadership initiatives supported by individual members, and uses communications, publications, policy research and public opinion surveys to shape public-private actions and develop innovative partnerships. For more information, visit www.massinsight.com.

SOURCE Mass Insight