UF: Florida Consumers Look to 2012 with Some Optimism

Florida consumers are ending 2011 with positive vibes.

A University of Florida study found Floridians may be a little wary about where their personal finances are going but are approaching 2012 more optimistically in regard to their belief in the U.S. economy than they had been a month earlier.

UFs Survey Research Center at the Bureau of Economic and Business Research, in its monthly consumer confidence report, increased its confidence level in Florida by 3 points on a scale of 100 from November.

The conclusion is based on four of the five areas the study focuses on --perceptions of personal finance, expectations of personal finance, expectations of the U.S. economy next year, expectations of the U.S. economy in five years, and if now is a good time to buy a big-ticket item -- increasing in the minds of Floridians.

The increase in consumer confidence among Floridians is in line with an increase in the national index which came in at 69.9 in December, Chris McCarty, survey director, stated in a release.

The rating is 10 points above the record low of 59 set in June 2008.

The scales benchmark 100 is equal to the level of consumer confidence in 1966, the year the survey began.

The Florida index rose among both younger and older respondents, McCarty continued. Floridians are most likely optimistic about continued improvement in the employment situation. The large increase in perceptions of buying conditions reflects big discounts from retailers for the holidays and very low interest rates for mortgages.

Only in the area of the expectations of their personal finances did Floridians show any lag.

McCarty also said the failure of Congress supercommittee on deficit reduction to reach a deal on the deficit failed to have a predicted negative impact.

Contrary to our prediction, the impasse of the (supercommittee) regarding deficit reductions came and went with very little concern from consumers, McCarty noted. It is worth noting that the agreement to increase the debt ceiling reached in August will now result in automatic cuts of $1.2 trillion beginning in 2013."