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Southeastern consumer confidence remains high, according
to RBC Southeastern CASH Index
Southeastern outlook shines brighter than rest of the nation
| Southeastern CASH INDEX |
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Topline
results (pdf 9 pages, 69
kB) |
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RBC
CASH Charts (pdf 1 page,
16 kB) |
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All
Indices (pdf 1 page, 20 kB) |
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Raleigh, N.C., December 19, 2006 — Consumer
confidence in the Southeast remained optimistic in the second
half of 2006 and was sunnier than the national outlook, according
to the RBC Southeastern CASH Index (Consumer Attitudes and
Spending by Household) commissioned by RBC Centura.
The RBC Southeastern CASH Index for the second half of 2006
was 99.8 out of a baseline of 100 points established in 2002.
This is a slight increase from 99.5 for the first half of
the year. Southeastern consumer confidence took a nose dive
in the second half of 2005, following a devastating hurricane
season and subsequently higher fuel costs. In the second half
of 2006, consumer confidence levels rebounded by 25 points
and stabilized during the third and fourth quarters.
The optimistic outlook for the Southeast far outpaces the
national index for the July to December periods (99.8 compared
to 85.4), which is not surprising because the Southeast typically
has a more positive attitude toward the economy than the rest
of the nation. Overall consumer confidence was driven largely
by optimistic expectations for the future and confidence in
job security.
"With a positive outlook for the future and good job
security, the Southeast seems well-positioned for continued
economic growth," said Derek Holt, RBC economist. "The
drop in economic confidence following Hurricane Katrina has
corrected and the Southeastern attitudes have returned to
normal."
The RBC Southeastern CASH Index findings include:
- Southeastern residents' expectations for personal finance
are slightly more positive than they were in the first half
of the year. The RBC Expectations Index for the Southeast
stands at 64.9, an increase of four points from first and
second quarters. Southeastern residents are more optimistic
than consumers nationwide when assessing their expectations
for personal finances.
- Consumer opinion in the Southeast cooled significantly
regarding the housing market. For the last six months of
2006, 39 per cent say it is a good time to buy real estate,
down six points from 45 per cent believing it was a good
time in the first half of 2006.
- Currently, half of Southeastern residents (49 per cent)
report they are less comfortable making a major purchase
than six months ago (compared to 45 per cent from January
until June). The RBC Current Conditions Index for the Southeast
stands at 113.7, slightly lower than 117.6 for the first
half of 2006, but well above the levels at the end of 2005.
The Southeast has a more positive attitude about current
conditions than the rest of the nation, which stands at
101 for the July until December timeframe.
- Job security also remains strong in the Southeast. The
RBC Jobs Index stands at 123.3, compared to 120.9 nationally
and 121 for the January until June period in the Southeast.
"RBC Centura continues to grow in the Southeast because
it is a vibrant market and a great place to do business,"
said Scott Custer, CEO of RBC Centura. "That is why we
have extended our current footprint and banking center network
into Alabama with the purchase of 39 AmSouth branches and
increased our presence across Georgia with the acquisition
of Flag Bank. These milestones complement our organic growth
strategy, which includes de novo branches in high-growth markets."
The RBC CASH Index is a composite measure of national consumer
attitudes toward the state of local economies, personal financial
situations, savings and investment and job security. The recent
six-month analysis includes a focused look at the Southeast
- Florida, Georgia, South Carolina, North Carolina and Virginia
- where RBC Centura serves clients through its retail and
commercial banking network.
The RBC CASH Index is broken down to include four sub-indices:
the RBC Current Index (measuring attitudes toward the
present strength of local economies and personal financial
situations); the RBC Expectations Index (measuring
confidence in future economic prospects); the RBC Investment
Index (measuring consumers' attitudes toward spending
and saving for the future); and the RBC Jobs Index
(measuring attitudes about job security and experiences with
job loss).
RBC
Southeast CASH Index (pdf, 1
page, 24Kb)
RBC CASH Index
The RBC CASH Index is a monthly national survey of consumer
attitudes on the current and future state of local economies,
personal financial situations, savings, and confidence to
make large investments. The CASH Index is benchmarked against
a baseline score of 100, assigned in January 2002 when the
Index was introduced. The CASH Index is conducted by Ipsos
Public Affairs. Results in this report include combined interviews
of monthly surveys from July 2005 to December 2005. National
results include 6004 total interviews and have a margin of
error of +/- 1.3 for all adults. The Southeast regional results
by RBC Centura include 908 total interviews with a margin
of error of +/- 3.3 for all adults. The Southeast region covers
interviews in Florida, Georgia, North Carolina, South Carolina
and Virginia.
RBC Centura
RBC Centura, headquartered in Raleigh, N.C., offers a wide
range of financial services and advice, including a complete
line of banking, and mortgage services to individuals, businesses
and public institutions throughout the Southeast. RBC Centura's
multi-faceted customer access network includes nearly 280
full-service banking centers, an extensive ATM network, and
telephone and Internet banking. In addition, RBC Centura offers
builder finance products through its RBC Builder Finance division.
According to S&L Financial, RBC Centura is the 58th largest
U.S. bank based on assets as of June 2006. RBC Centura Banks
Inc. is a wholly-owned subsidiary of Royal Bank of Canada
(RBC) (RY on NYSE and TSX), Canada's largest bank as measured
by assets. Additional information about RBC Centura may be
found at www.rbccentura.com.
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