Income Rises Just 2%, but Consumers Remain Confident

By JONATHAN WEBER

Nov. 22, 1989 12 AM PT

TIMES STAFF WRITER

Household income in Orange County rose only 2% over the past year, but consumer confidence in the economy was still very strong, according to the first batch of results from UC Irvine’s 1989 Orange County survey.

The annual survey also found that the county’s “north-south” income gap continued to widen, with 50% of South County residents earning more than $50,000 annually against 40% in the northern and western regions and just 29% in the central area.

Median income in the county rose by $1,000 to $45,000, the survey showed, thus failing to keep pace with the 5% inflation rate.

“There’s been very little growth in income the last two years,” said UCI professor Mark Baldassare, who conducted the survey. “It’s been very slow in the second half of this decade compared to the first half.”

The results are based on a telephone poll of 1,085 adult Orange County residents contacted between Sept. 6 and 23.

Only half the residents surveyed said they were better off this year than last year, compared to 57% who felt that way the year before. Nonetheless, Orange County residents remained optimistic about the economy, with 56% believing they will be better off next year and 68% expecting that the U.S. economy will enjoy good times in the coming year.

Baldassare said the overall consumer confidence picture showed that “although residents are less positive about current conditions, they remain quite optimistic in their future expectations for themselves and the U.S. economy as a whole.”

Only 66% of residents believe that this is a good time to make major purchases, compared to 70% in 1988 and 78% in 1987, the survey found.

Overall consumer confidence, as represented by an index that tabulates responses to five questions, remains significantly higher in Orange County than in the nation as a whole, according to Baldassare. The Orange County index stands at 105, against 96 for the national index developed by the University of Michigan.

The Orange County annual survey, which explores the views of residents on a range of economic and quality-of-life issues, is carried out by the UCI Center for Survey Research with the support of 40 Orange County companies, public agencies and foundations. The complete results will be released in early December.

DISTRIBUTION OF INCOME

Income range in 1989 survey for residents of the county:

Less than $36,000: 33%

$36,000 to $50,000: 26%

Over $50,000: 41%

Below is the percentage of residents in each portion of the county having an annual income of more than $80,000 (black bars) or more than $50,000 (gray bars).

1989 CONSUMER CONFIDENCE

A survey of 1,085 adult Orange County residents found that although residents are less positive about the present, they remain optimistic about the future.

“Good times or bad times for the U.S. next year?”

Good times: 68%

Bad times: 16%

Don’t know: 16%

“Good times or bad times for the U.S. in the next five years?”

Good times: 48%

Bad times: 39%

Don’t know: 13%

“Better off or worse off now than last year?”

Better: 50%

Worse: 14%

Same: 36%