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Quarterly Consumer Confidence Survey Suggests State Budget Situation Affecting Household Sentiment

(Statewide) – Responses to the Q2 2017 InformCT Consumer Confidence Survey suggest it is possible the uncertainty of the state’s budget situation may be contributing to the decreased likelihood of purchasing.

Sixty-nine percent of respondents said that state budget cuts would have some or a significant effect on their personal budgets (up from 56% in Q1 2016, when previously asked). The share saying there would be a significant impact increased from 15% to 22%, while the share saying there would be some impact increased from 41% to 47%. The percentage expecting an impact on their personal budgets from state budget cuts grows as respondent incomes decrease.

Fifty-eight percent thought the state should reduce spending to remedy the budget situation, similar to 2016 (59%). In addition, 45% of respondents also thought the state should increase taxes on the top 1% of households, a two-percentage point increase. There was also a two-percentage point increase in those who thought the state should raise taxes on businesses (from 13% to 15%).

As for the current discussions about funding of pensions for public school teachers, 44% said the responsibility should be equally divided between state and municipal governments, while 38% said the state government was only or mostly responsible, and only 18% said municipal governments had most or all responsibility.

The survey is released by InformCT, a public-private partnership that provides independent, non-partisan research, analysis, and public outreach to help create fact-based dialogue and action in Connecticut. Administered by researchers from the Connecticut Economic Resource Center, Inc. and Smith & Company, the analysis is based on the responses of residents across Connecticut and addresses key economic issues, providing a glimpse of the public’s views. The survey of 505 state residents has a margin of error of 4%.