Though clearly affected by an anemic job market and a two-year drop in housing values, the majority of Californians are nonetheless optimistic about the future of the state, according to the Citi California Pulse™, a new quarterly survey released today by Citibank. 

Currently, 93 percent of Californians say that the condition of the state’s economy is poor or only fair, while 89 percent feel the same about employment opportunities for those looking for work. However, at the same time, 62 percent say that economic conditions in California will be much better or somewhat better in the next 12 months, and 58 percent feel the same way about job opportunities in California over the same time period. 

“This first Citi California Pulse survey clearly shows that Californians are optimistic about where the state’s economy and their personal circumstances are headed, despite being pessimistic about current conditions,” said Rebecca Macieira-Kaufmann, President of Citibank California. “In a state that is constantly reinventing itself, Californians are already looking toward a brighter future.” 

Among the survey’s key results: 

• 65 percent say California is an excellent or good place to live, while nearly 40 percent said it is one of the best places to live in the United States. 
• 55 percent of young people (18 to 34) say California’s best days are ahead. 
• Although 85 percent say their personal financial situation is worse off or about the same as a year ago, 69 percent are optimistic that their personal financial situation will improve in the next 12 months. 
• Most California residents are more comfortable with their current level of debt (62 percent) than they are with their current level of savings (44 percent). 
• 62 percent say a year from now will be a better time to buy big-ticket items, such as furniture, a refrigerator, or an automobile. 
• Young Californians (18 to 34) are more positive than middle-aged Californians (35 to 54). 
• California men are more positive than California women. 

Impact of Recession Creates a “New Normal” in Spending and Saving 

The Citi California Pulse also found strong evidence of a “new normal” in financial behavior in the wake of the deepest recession in decades. According to the survey, a majority of Californians say the way that they spend, save and invest, as well as their approach to managing their finances, including expenses and debt, has “forever changed.” For example: 

• 79 percent of respondents say they have taken action to cut back on everyday expenses, 
• 63 percent are saving and investing more, 
• 58 percent have reduced the amount of money they owe, and 
• 65 percent have taken fewer and less expensive vacations. 

“The economic downturn appears to have triggered long-lasting changes in consumer behavior,” said Macieira-Kaufmann.

“These changes have also influenced what Citi is doing to support customers through these challenging times – including helping consumers pay off debt and ‘save smart’ with our market-leading CDs, as well as providing much-needed credit to small businesses.” 

Source: BusinessWire