Joe Pyrah

Gas prices and inflation are dragging down the attitudes of Utah's business executives.

"We're seeing quite a shift in the views of our local business leaders," said Pat Jones, co-owner of Dan Jones & Associates. "Driving the increase in economic pessimism are economic concerns such as gasoline prices and inflation that are at their highest levels in the history of our study."

The Dan Jones poll was released Monday by Zions Bank for its quarterly economic forecast.

On a scale of 1-10, executive optimism is down to 6.45 from a high of 7.87 in 2006.

"We're calling it guarded optimism, whereas it was enthusiastic early on," said Julie Olsen, project director for Dan Jones.

Negative Trends

Executives' concerns that have worsened since late 2006 are

• gas prices;

• inflation;

• utility costs;

• ability to compete in the marketplace;

• cost of inventory and supplies.

If that list looks a lot like your list of your concerns, you're not alone.

"Most of them are not from huge companies, so they are the regular people," Olsen said of the executives.

State of the Economy

It comes as no surprise that economies of all scales are experiencing some rough times. Jeff Thredgold, economic consultant to Zions Bank, says even heretofore resilient states like Idaho are struggling.

"The U.S. economy probably is in recession. [It's] fairly mild but it may be around for a while," Thredgold said.

There is some good news, though, he said.

Prices in the commodities markets -- gold, steel and oil for example -- are beginning to recede. Gas is down to a national average of $3.81 a gallon. The reason, he says, is that speculators fear those markets could collapse quickly.

That, in turn, could improve consumer confidence, which has been in the doldrums.

That said, Utah has its share of problems. The Dan Jones poll shows a slowdown in hiring and capital expenses. Thredgold adds that the housing market is still being pummeled from developer exuberance just a few short years ago.

"We have seriously weak housing markets in Utah tied to some overbuilding that took place."