Consumer confidence in Silicon Valley and California dipped in June to their lowest levels since January 2004, according to a new report released this week.
The California Consumer Confidence Survey, conducted by the Survey and Policy Research Institute at San Jose State University, showed Silicon Valley had lost the renewed hope it showed in the first three months of the year. The confidence index, where a higher score reflects more confidence in current economic conditions and those over the next 12 months, shows the region slipped to 86.0 in June from 94.2 in March.
By comparison, the confidence level was 89.2 statewide in June, down from 91.1 a year ago. A similar index measured by the University of Michigan showed a nationwide confidence level of 96.0 in June.
``California consumers are anxious about their personal fortunes and the future of the economy,'' survey director Miriam Gasko Donoho said in a prepared statement. ``They feel better about having a few bucks in their pockets, but they're worried they may not be able to make ends meet a year from now.''
The study polled 928 adults -- including 276 in Silicon Valley -- from June 27 to July 1. The statewide data has a margin of error of plus or minus 3.2 percent, while the Silicon Valley data has a margin of error of plus or minus 5.9 percent.
In some ways, I'm not surprised, living here in the Silicon Valley. The employment picture here is still stagnant--regardless of the rosy job reports I've seen from the mainstream press. Gas prices are still about 40 cents higher here than in the rest of the country, and housing prices are just about out of reach towards anyone making less than $180,000 a year (single or combined salary). While the weather may be nice, everything else has gotten sour here. Like it or not, people are still scared here.
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