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MISSOULA - Montana consumers are much more upbeat about the economy than their counterparts elsewhere around the country, probably because of the state’s continuing economic growth.

That according to Paul Polzin, director of the University of Montana’s Bureau of Business and Economic Research, who reports that the Montana Index of Consumer Sentiment for summer/fall 2007 was 131, equaling its all-time high reported in early 2006.

This peak is well above the values 100 to 109 reported during the last U.S. recession of 2000-01.

In contrast, the University of Michigan’s Index of Consumer Sentiment suggests U.S. consumers as a whole have become increasingly downcast, perhaps reflecting the collapse in the housing market. The U.S. index was 80.9 in October, down from 90.4 in July and 88.4 in March.

The Montana ICS rose from 128 in both late 2006 and early 2007 to the record 131 in summer/fall 2007. Polzin said this increase is probably within the margin of error and it would be safe to conclude that Montana consumers remained very optimistic throughout this period.

Polzin attributes Montana’s consumer optimism to a strong economy - buoyed by the natural resource industries and construction - combined with a relatively mild local impact of the bursting housing bubble.

He said preliminary data show Montana house prices to be holding stronger than the national average and the exposure to sub-prime mortgages to be less than elsewhere.

The Montana ICS is based on a BBER telephone survey and is comparable to the widely quoted University of Michigan index. It is calculated from five questions concerning different aspects of the economy.

The latest survey was conducted from Aug. 26 to Oct. 11 and includes the responses of 552 Montana adults.

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