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

In a sign of California’s resiliency, a majority of the state’s residents (74 percent) say the recent recession has not hampered their ability to achieve their life goals, according to the latest Citi California Pulse®. Moreover, 81 percent say they consider themselves somewhat or very successful, showing that despite the downturn and slow recovery, Californians remain optimistic about the state and their own prospects.

Citibank’s latest quarterly survey also found that only 15 percent of respondents believe they are currently upper-class or well-off, with 66 percent describing their circumstances as working-class or middle-class; 18 percent say they are poor. Yet 60 percent believe it somewhat or very likely that they will achieve upper-class or well-off status in the next five to 10 years. Californians also continue to see brightening prospects in the near-term: Looking forward 12 months, 65 percent of respondents believe their personal financial situation will improve, 57 percent believe economic conditions in California will get better, and 56 percent believe job opportunities will increase. Additionally, 65 percent currently rate California as a good or great place to live.

“California is often viewed as the land of opportunity, and we are thrilled to see that so many residents believe the state’s best days are still ahead,” said Rebecca Macieira-Kaufmann, President of Citibank California. “Though the current recovery appears slow, Californians continue to look to the future with pluck and optimism, which is a great sign for the state.”

Optimism Index

At the same time, the survey shows that the current environment remains challenging. Sixty-five percent say they see no signs of economic recovery in California, and majorities rate current economic conditions, opportunities for jobs and consumer spending as fair or poor. Overall, the Citi California Pulse Index of optimism fell to -2 in the second quarter of 2011, down from 0 in the first quarter. At 0, the index would be on the exact middle point of all possible scores, which could range from +100 to -100. The Index of optimism in San Diego came in at +5, compared to +3 in San Francisco, +2 in Los Angeles, and -5 in both Sacramento and Fresno.

Among the survey’s key findings:

• 90 percent say the economy in California is fair or poor;
• 84 percent say they fared better or about the same through the recession compared to other people, only 13 percent say they fared worse;
• 70 percent say in the current conditions they are “just keeping even”;
• 58 percent say California is on the wrong track, while 28 percent say it is headed in the right direction;
• 27 percent say the recession has delayed their retirement plans.

Measuring Success

When measuring success against others, respondents see themselves as on par with most. Eighty-one percent say they are more or about as successful as the people they grew up with, 75 percent say they are more or about as successful as their parents, and 73 percent say they are more or about as successful as their siblings.

Looking ahead to the next generation, 55 percent say they believe their children will be more successful than they are, compared to only 7 percent who say they expect them to be less successful. Regionally, 84 percent of Los Angeles residents describe themselves as successful, compared to 82 percent in San Diego, 79 percent in Sacramento, 78 percent in Fresno and 77 percent in San Francisco.

Retirement and Summer Travel Plans

Many Californians harbor concerns over their retirement preparations, with 62 percent saying they are worried they will not have enough money for retirement. When asked about saving for retirement, 56 percent say they are somewhat or very uncomfortable with their current savings; 39 percent say they are comfortable. Sixty-three percent say they are actively reducing spending to shore up their retirement accounts.

Looking at summer travel, nearly 60 percent of Californians will not take a vacation. Among those who do plan a summer vacation, 75 percent are taking less than or the same amount of time off as last year; only 13 percent are taking more. Additionally, 83 percent plan to drive a car for their trip, 65 percent will spend less than $2,000, 32 percent will travel to another state, and 12 percent will visit another country.

Regional Differences

The regional differences identified by Citibank changed in the latest survey, with the split coming between coastal residents and inland residents, not Southern California and Northern California, as Los Angeles and San Diego residents appear to be getting more optimistic.

• Seventy-four percent in San Diego, 68 percent in San Francisco and 65 percent in Los Angeles rate the state as an excellent or good place to live, while 59 percent in Sacramento and 51 percent in Fresno feel the same way.
• Sixty-one percent in Los Angeles, 56 percent in San Francisco and 53 percent in San Diego believe job opportunities will be better in 12 months, compared to 48 percent in Sacramento and 47 percent in Fresno.
• Fifteen percent in San Diego, 13 percent in San Francisco and 12 percent in Los Angeles say current economic conditions are excellent or good, compared to 8 percent in Fresno and 5 percent in Sacramento.

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 June 21-26, 2011, among a random sample of 1,951 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 317 interviews in the San Francisco MSA, 295 interviews in the Los Angeles MSA, 306 interviews in the San Diego MSA, 296 interviews in the Sacramento MSA, and 303 interviews in the Fresno 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 Citibank

Citibank is a member of Citi®, the leading global financial services company, which 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.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6806131&lang=en