Q1 2021
In the survey, business leaders praised Utah’s balanced budget and expressed concern about untethered spending by the federal government. Many CEOs shared their worry about inflation becoming a major economic concern in the coming months. This, coupled with the rising cost of housing, will be two of the most important economic challenges on the immediate horizon. For Utah, having sufficient people for the workforce is a rising concern with our nation-leading unemployment rate. This also feeds into inflation and places our economy in a unique position. I remain optimistic about our ability to attract talent if we can address our pressing housing challenge. The Utah CEOutlook continues to provide valuable information about what’s in the sightlines of Utah CEOs. As business continues to lead, we can stay ahead of emerging challenges.
CEOutlook
80.0
75.3
70.0 66.3 60.0
62.8 62.0 60.6 62.4 62.3 60.9
50.0
55.5 53.2
60.1
53.3
61.2 59.4
40.0
57.3 58.9 32.3
30.0
Optimism
4.0% 3.1% 2.9% 2.6% 3.3% 3.4% 3.2% 3.3% 3.1% 2.9% 3.2% 2.9% 2.9% 2.7% 3.0% 2.0% 1.0% 0.0% 0.0% -1.3% -1.0% -0.8% -2.0% -3.0% -4.0% -5.0% - 5.0% -6.0%
Concern
With each CEOutlook, CEOs are surveyed about an economic topic of interest, and this quarter focused on federal and state economic leadership. Not surprisingly, Utah CEOs have significantly more optimism in state leadership than they do in federal. This confidence coincides with the state’s commitment to remain safe and open throughout the pandemic. That path was not easy to take but it proved fortuitous and saved many jobs.
The Salt Lake Chamber's CEOutlook Confidence Index increased from 58.9 in 2020-Q4 to 75.3 for 2021-Q1. Year-Over Job Growth
Utah’s economic recovery and growth continue to lead the nation. The indicators show a strong, positive trend that is expected to continue, especially as the incumbent challenges of growth return in full measure.
Confidence Index and Job Growth
Confidence Index
Derek B. Miller, President and CEO, Salt Lake Chamber
20.0 10.0 0.0
Q1
Q2 Q3 2017
Q4
Q1
Q2 Q3 2018
Q4
Q1
Q2 Q3 2019
Q4
Q1 Q2 Q3 Q4 Q1 2021 2020
The Salt Lake Chamber’s CEOutlook Confidence Index is based on responses to the four standard questions included in each quarter’s survey (Questions 1-4). The Index can range from 0 to 100. A score below 50 indicates executives believe the economy will worsen; a score above 50 indicates a belief among executives that the economy will improve. Source: Index is produced from the Salt Lake Chamber’s CEOutlook with support from the Kem C. Gardner Policy Institute, including analysis of the Utah Bureau of Labor Statistics.
Natalie Gochnour, Director and Chief Economist, Kem C. Gardner Policy Institute and Salt Lake Chamber Utah CEOs report a much more positive view of the Utah economy in the first quarter of 2021. In fact, we measure the highest overall index since we began collecting the CEOutlook. I see several reasons for this. First, Utah’s economic and health performance during the pandemic bested most, if not all, states. Second, labor market conditions have turned quite favorable with an end to the contraction in jobs and low unemployment rates. Finally, Utah’s vaccine rollout has been impressive. While we still need to make progress in communities with less access to vaccines, overall vaccination rates are high and getting better every day. Case counts and hospitalizations are down. This is great news after over a year of pandemic hardship. I’m grateful for business leaders who have innovated and adapted during these times. I’m also impressed with our governor, legislative leaders, and health care professionals who have served our state in such a dedicated way. I look forward to the better days that lie ahead.
First Quarter
I 2021