During the holidays, a majority of Californians will spend the same as or less
than last year. Though many Californians do not expect significant economic
improvement in 2012, the majority are prepared for continued challenges and
adjusting their spending and saving habits, according to the latest Citi
California Pulse(R). Additionally, Citibank's latest quarterly survey found
that the majority of Californians (63 percent) continue to rate the state as
an excellent or good place to live.

Respondents say they feel financially sound, with most saying their current
situation allows them to meet their obligations or save money. More than half
say they feel empowered to improve their current situation, though not as much
as they would like.

"Our survey continues to show that despite uncertainty over future economic
conditions, Californians are prepared for the eventual recovery," said
Rebecca Macieira-Kaufmann, President of Citibank California. "We remain
encouraged to see the resiliency that so many Californians are demonstrating
by taking action to adjust to these challenging times."

Citi California Pulse(R) Optimism Index
At the same time, the survey clearly shows that the current environment remains
challenging. Sixty-nine percent say they see no signs of economic recovery in
California, up from 65 percent in June. Additionally, when looking ahead 12
months, fewer Californians believe conditions will improve for job opportunities,
their own financial situation or the overall California economy. For example,
87 percent rate current job opportunities as fair or poor; looking ahead 12
months, less than half (46 percent) expect job opportunities to improve, down
from 56 percent in June and 58 percent a year ago.

The Citi California Pulse Index of optimism fell to -7 in the third quarter of
2011. At 0, the index would be on the exact middle point of all possible scores,
which range from +100 to -100. The Index of optimism in San Diego came in at +2,
compared to +1 in San Francisco and -6 in Los Angeles. The total for all other
counties was -14.

Spending and Saving Behavior
The survey revealed a new outlook on spending and saving among Californians,
with 58 percent saying the way they spend and save has "forever changed" as a
result of the recession. According to the survey:
-- 72 percent are eating out at restaurants less;
-- 71 percent have cut down on credit card purchases;
-- 67 percent are using coupons;
-- 66 percent have cut back on premium products such as gourmet coffee and food;
-- 53 percent are shopping at stores that sell bulk items.

Some are taking additional measures. According to the survey, 40 percent of
Californians say they have changed living arrangements to save money, a number
that rises to 56 percent among those aged 18 to 34.

Holiday Spending
Looking at the upcoming holiday season, most Californians say they expect to
spend the same as (50 percent) or less than (38 percent) last year. Only 12
percent expect to spend more money. Thirty-eight percent say they will buy only
items on sale, while 39 percent plan to look for deals but may buy non-sale
items; 10 percent say price doesn't matter. When asked how they would make their
holiday purchases, 65 percent will pay cash or use a debit card, 32 percent will
use a credit card. Seventy-one percent plan to shop in a store or mall; 20
percent will shop online. When asked if holiday spending would represent a
"strain" for their family, Californians were split, with 46 percent saying
it would not be a strain and 46 percent saying that it would be.

Californians were split on the subject of "good debt" v. "bad debt," with 49
percent saying there is good debt and 47 percent saying there is no such thing.
Respondents cited a primary home mortgage and student and home improvement loans
as examples of good debt, but a second-home mortgage and loans for travel and
entertainment as bad debt.

Among the survey's other key findings:
-- 88 percent say the economy in California is fair or poor;
-- 59 percent say California is on the wrong track; while 26 percent say it
   is headed in the right direction;
-- 45 percent say California residents are worse off than residents of other
   states; 24 percent say they are better off and 24 percent about the same.