Consumer Confidence Rises In Greater Washington

Regional Consumers Three Times More Confident in Greater Washington than Nation; Future Expectations Jump

WASHINGTON, May 11 /PRNewswire-USNewswire/ -- The Greater Washington region's Consumer Confidence Index jumped a solid seven points between December 2008 and now, from 49 to 56, according to a survey released by the Greater Washington Board of Trade. The Board of Trade's Consumer Confidence Index, which indicates the consumer's degree of optimism on the economy, shows a significant rise in the view of the region's current economy, high expectations for future economic conditions and confidence in employment.

"Movement from the benchmark established in the middle of the economic downfall in December to the survey released today accurately identifies consumer confidence levels," said Jim Dinegar, president and CEO of the Board of Trade. "The seven point rise in the Consumer Confidence Index is a clear indication of growing economic optimism in Greater Washington."

The survey, conducted for the Board of Trade by Clarus Research Group, a nonpartisan Washington-based research firm, was sponsored by Tatum, LLC, a leading professional services company supporting the office of the CFO. A scientifically-selected sample of 1,208 consumers in the Greater Washington region was surveyed by live telephone interviewers from April 21 to 27, 2009.

"Consumers now tilt positive in their perception of current economic conditions in the region," said Dr. Ron Faucheux, president of Clarus Research Group. "This represents a change from December 2008, when consumers tilted to the negative side on current conditions by eight points."

In both the benchmark survey and the survey released today, consumers are considerably more positive about future expectations for the region's economy, Faucheux noted.

The Index of Future Expectations is 72, much higher than the perceptions of where things are now (index of 39). Future expectations are ten points higher now than they were in December 2008 (72 versus 62).

"This data supports a sense of growing optimism over the next six months," said Pete Pfeiffer, managing partner of Tatum LLC. "As consumer confidence rises and jobs stabilize, businesses will begin to lift hiring restrictions and spend more to meet increased demands from customers. The domino effect of confident consumers is very encouraging."

"The region's economic optimism has been consistent," said Jim Dinegar. "Positive perceptions of the Greater Washington region's economy are 41 percent - three times greater than the positive perceptions of the national economy."

Many respondents are confident in their current employment too, Dinegar noted, with nearly four-out-of five respondents expecting their employers to either keep their current number of jobs or increase them, and nearly four-out-of-five expecting their employment to continue during the next six months "as it is now." Additionally, despite difficult economic times, 43 percent of the workforce said that their salaries were either increased or supplemented by bonuses or added benefits and 15 percent expect to receive promotions in the next six months.

According to the survey, Washington, DC and counties in Maryland experienced the biggest rise in consumer confidence since last December (each up eight points), followed by counties in Northern Virginia (up three points). As a region, consumers tilted positive on their perceptions of current economic conditions as well as on future expectations (by two points). This shows increased confidence in the regional economy since December 2008 when consumers titled negative on current conditions (by eight points).

Consumer spending accounts for roughly two-thirds of our economy. When consumers are reluctant to spend, the economy is affected and when they open their pocket books, the economy moves. Many analysts believe consumer confidence is one of the most important economic predictors.

To see more key highlights, download the report at www.boardoftrade.org/consumerconfidence.

Greater Washington Board of Trade

The Greater Washington Board of Trade is the Greater Washington region's premier business network and the only local business association representing all industry sectors. Founded in 1889, the Board of Trade enjoys a long history of helping its members' businesses grow by providing content-rich programs, connecting business leaders and marketing Greater Washington's economic opportunities. As Greater Washington's regional business organization, the Board of Trade addresses business concerns that stretch across geographic boundaries, such as transportation, emergency preparedness, green as a competitive advantage and workforce issues. For more information, visit www.boardoftrade.org.

Clarus Research Group

Clarus Research Group is a full-service and nonpartisan survey research firm based in Washington, DC. Clarus provides a full range of polling and market research services to corporate, association, nonprofit and public affairs clients. Clarus conducts public opinion surveys, focus groups, dial sessions, branding studies and media research. It is headed by Dr. Ron Faucheux, who also teaches at the Public Policy Institute at Georgetown University. For more information, visit www.ClarusRG.com.

Tatum LLC

Companies turn to Tatum when critical business challenges arise because we immediately deliver financial and technology operational expertise via solutions tailored to the Office of the CFO. We leverage nearly 1,000 executives and consulting professionals nationwide to accelerate results and create more value(TM). For more information, visit www.TatumLLC.com.

CONTACT: Liz Krinock
202.857.5987 (o)
202.821.5095 (c)
LizKrinock@bot.org


SOURCE Greater Washington Board of Trade