Citi California Pulse® Survey Finds Majority of Californians Prepared for Prolonged Economic Challenges

Document Sample
Citi California Pulse® Survey Finds Majority of Californians Prepared for Prolonged Economic Challenges Powered By Docstoc
					Citi California Pulse® Survey Finds Majority of
Californians Prepared for Prolonged Economic
Challenges
Many taking action to improve their financial situation and save money

During the holidays, majority will spend the same as or less than last year

November 09, 2011 11:33 AM Eastern Time 

SAN FRANCISCO--(EON: Enhanced Online News)--Though many Californians do not expect significant
economic improvement in 2012, the majority are prepared for continued challenges and adjusting their spending and
saving habits, according to the latest Citi California Pulse®. Additionally, Citibank’s latest quarterly survey found that
the majority of Californians (63 percent) continue to rate the state as an excellent or good place to live.

Respondents say they feel financially sound, with most saying their current situation allows them to meet their
obligations or save money. More than half say they feel empowered to improve their current situation, though not as
much as they would like.

“Our survey continues to show that despite uncertainty over future economic conditions, Californians are prepared
for the eventual recovery,” said Rebecca Macieira-Kaufmann, President of Citibank California. “We remain
encouraged to see the resiliency that so many Californians are demonstrating by taking action to adjust to these
challenging times.” 

Citi California Pulse® Optimism Index

At the same time, the survey clearly shows that the current environment remains challenging. Sixty-nine percent say
they see no signs of economic recovery in California, up from 65 percent in June. Additionally, when looking ahead
12 months, fewer Californians believe conditions will improve for job opportunities, their own financial situation or
the overall California economy. For example, 87 percent rate current job opportunities as fair or poor; looking
ahead 12 months, less than half (46 percent) expect job opportunities to improve, down from 56 percent in June and
58 percent a year ago.

The Citi California Pulse Index of optimism fell to -7 in the third quarter of 2011. At 0, the index would be on the
exact middle point of all possible scores, which range from +100 to -100. The Index of optimism in San Diego came
in at +2, compared to +1 in San Francisco and -6 in Los Angeles. The total for all other counties was -14.

Spending and Saving Behavior

The survey revealed a new outlook on spending and saving among Californians, with 58 percent saying the way they
spend and save has “forever changed” as a result of the recession. According to the survey:

    l   72 percent are eating out at restaurants less;
    l   71 percent have cut down on credit card purchases;
    l   67 percent are using coupons;
    l   66 percent have cut back on premium products such as gourmet coffee and food;
    l   53 percent are shopping at stores that sell bulk items.
Some are taking additional measures. According to the survey, 40 percent of Californians say they have changed
living arrangements to save money, a number that rises to 56 percent among those aged 18 to 34.

Holiday Spending

Looking at the upcoming holiday season, most Californians say they expect to spend the same as (50 percent) or
less than (38 percent) last year. Only 12 percent expect to spend more money. Thirty-eight percent say they will buy
only items on sale, while 39 percent plan to look for deals but may buy non-sale items; 10 percent say price doesn’t
matter.

When asked how they would make their holiday purchases, 65 percent will pay cash or use a debit card, 32 percent
will use a credit card. Seventy-one percent plan to shop in a store or mall; 20 percent will shop online. When asked
if holiday spending would represent a “strain” for their family, Californians were split, with 46 percent saying it would
not be a strain and 46 percent saying that it would be.

Californians were split on the subject of “good debt” v. “bad debt,” with 49 percent saying there is good debt and
47 percent saying there is no such thing. Respondents cited a primary home mortgage and student and home
improvement loans as examples of good debt, but a second-home mortgage and loans for travel and entertainment
as bad debt.

Among the survey’s other key findings:

    l   88 percent say the economy in California is fair or poor;
    l   59 percent say California is on the wrong track, while 26 percent say it is headed in the right direction;
    l   45 percent say California residents are worse off than residents of other states; 24 percent say they are better
        off and 24 percent about the same.

About the Survey

The Citi California Pulse® is a quarterly survey focused on California consumer and small business sentiment
regarding the current and future economic environment. This Citibank poll was conducted by telephone September
23-28, 2011, among a random sample of 1,440 California residents, age 18 and older throughout the state.
Interviews were conducted in both English and Spanish. The design includes interviews with cell phone respondents
and a small number of Asian and Hispanic re-contact interviews, as well as 305 interviews in the San Francisco
MSA, 307 interviews in the Los Angeles MSA, and 302 interviews in the San Diego MSA. The cell phone and
MSA samples are weighted to the correct proportions.

The margin of error for the entire sample is approximately +/- 3 percentage points. The margin of error is higher for
subgroups. Surveys are subject to other error sources as well, including sampling coverage error, recording error,
and respondent error. Abt SRBI Public Affairs, a major national polling firm, conducted all interviewing. For
additional information, visit: www.srbi.com.

Index Methodology

The Citi California Pulse® Index of optimism is calculated by subtracting negative responses to each item from the
positive responses for all 12 index items. The Index scale can range from +100 (if every respondent gave positive
response to each of the 12 questions) to -100 (if all respondents expressed consistently negative views).

About Citi

Citi, the leading global financial services company, has approximately 200 million customer accounts and does
business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and
institutions with a broad range of financial products and services, including consumer banking and credit, corporate
and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi |
Blog: http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Contacts
Citi
Robert Julavits, 415-658-4310

Recent Stories from Citi


   l

       Citi California Pulse® Survey Finds Majority of Californians Believe their Goals and Dreams are Recession-
       Proof
       July 26, 2011

       SAN FRANCISCO--(EON: Enhanced Online News)--Citi California Pulse Survey Finds Majority of
       Californians Believe their Goals and Dreams are Recession-Proof. more »



   l

       Citi California Pulse™ Survey Finds the California Dream Struggling as Recession’s Effects Linger
       April 21, 2011

       SAN FRANCISCO--(EON: Enhanced Online News)--Less than half of Californians believe the California
       Dream is still alive according to the latest Citi California Pulse™. more »




Release Tags
   l   California
   l   California Pulse
   l   Citibank
   l   Los Angeles
   l   Optimism Index
   l   President of Citibank California
   l   Rebecca Macieira-Kaufmann
   l   San Diego
   l   San Francisco

Categories
News by Industry

   l   Banking (Professional Services)
   l   Business
   l   Executives
   l   Finance (Professional Services)
   l   Professional Services

News by Subject

   l   Survey

News by Geography

   l   California
   l   North America
   l   United States
Smart Multimedia Gallery




Rebecca Macieira-Kaufmann, President, Citibank California (Photo: Business Wire)

View and Share Photo

    l   Download Small
    l   Download Full Size




Citibank California Pulse

View and Share Photo

    l   Download Small
    l   Download Full Size




Citibank California Pulse

View and Share Photo

    l   Download Small
    l   Download Full Size




Citibank California Pulse

View and Share Photo

    l   Download Small
    l   Download Full Size
View and Share Logo

    l   Download Small
    l   Download Full Size

Release Summary
Citibank’s latest quarterly survey California Pulse found that the majority of Californians (63 percent) continue to
rate the state as an excellent or good place to live.

Citi

    l       News Feed
            View Quote/ Chart
    l                           NYSE:C

Share
    l

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:2
posted:11/9/2011
language:English
pages:5
Description: SAN FRANCISCO--(EON: Enhanced Online News)--Citibank’s latest quarterly survey California Pulse found that the majority of Californians (63 percent) continue to rate the state as an excellent or good place to live. img border='0' title='Add to Google' alt='Add to Google' src='http:/
EON: Enhanced Online News EON: Enhanced Online News http://eon.businesswire.com
About At EON: Enhanced Online News, we show you how to make your online press release thrive. If you want to drive traffic to your website, generate sales leads, make an announcement, or promote a new product, EON: Enhanced Online News delivers the online visibility that you need. EON: Enhanced Online News powered by Business Wire.