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(R). 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.