California consumers are as bearish as they have been in years about the prospects for the state economy as housing market woes and soaring gas prices have taken their toll, according to a survey released Monday.
The Chapman University California Consumer Sentiment index fell to 66 for the first quarter of 2008, down from 71 in the fourth quarter of 2007 and 102 a year ago. The index is at its lowest level since Chapman launched its survey in the third quarter of 2002.
A reading below 100 reflects a higher percentage of respondents who are pessimistic compared to those who are optimistic about the near-term economic outlook. Consumer sentiment is a gauge used by economists to predict consumer spending patterns.
Respondents were most bearish about the current state of the economy as the index of current economic conditions fell to a record-low 46, down from 56 in the fourth quarter and 97 a year ago. The future outlook also declined to 81 in the first quarter from 86 in the fourth quarter of 2007 and from 102 a year ago.
The Chapman survey is comprised of six questions and is mailed to a sample of 5,000 residences throughout the state; the response rate typically ranges between 5 percent and 10 percent.