It could be good news for Gov. Rick Scotts re-election efforts: Floridians feel better about the economy.
Consumer confidence among Floridians ticked up three points to 76 in March from February, according to monthly tracking numbers from the Bureau of Economic and Business Research, a division of the University of Florida. Four of the five units that comprise the index improved, with the last going down.
In contrast to the mood in the rest of the nation, Floridians expectations about personal finances as compared to a year ago went up by four points to 68. The last time that level was reached was 1992, coming out of the prior two years of recession. Meanwhile, perceptions of U.S. economic conditions over the next year rose five points to 78. Both young and old felt good about the economy, but lower-income residents were not as optimistic.
This rise was unexpected, said Chris McCarty, director of UFs Survey Research Center in the BEBR. According to a recent University of Michigan study, the confidence level for the entire U.S. fell sharply by almost six points in the wake of federal budget cuts resulting from the sequestration process that started in early March.
Floridians as a whole do not appear to be phased by sequestration, or the expiration of the payroll tax cut that took effect in January. As it looks like the sequester cuts will be locked in until the end of September with the continuing resolution deal, it is important to know how this affects consumers. The fear has been that the combination of the payroll tax expiration and sequestration would dampen the recent growth in consumer activity. That does not seem to be the case in Florida.
Economic factors in the state have given reasons for sunnier attitudes. Floridas jobless rate is lower than the national average for the first time since the recession hit. Floridas housing market, which was crushed when the bottom dropped out, is on the rise with the median price of a single family home at $150,000 in February, up $5,000 from January and 12.8 percent from last year. Areas like Southeast Florida continue to see home prices on the rise as the lack of inventory drives up prices.
A report this week by AAA revealed Floridas gas prices dropped 2 cents more than the national average, and Floridians can look for even more savings per gallon as they hit the road this Easter weekend. Gas prices in Florida decreased by 4 cents to average $3.69 a gallon. Across America, prices decreased by only 2 cents to land at $3.67 per gallon of regular unleaded gasoline. The Easter weekend is forecast to see a drop regionally of another 3 to 5 cents.
Scott is hoping to drive home to Florida voters the message that his policies are working. The governor appeared on CNN to tout his new website -- www.itsworkingflorida.com -- telling host Soledad O'Brien that unlike the previous four years when the state lost 800,000 jobs under the watch of former Gov. Charlie Crist, the past two years Scott's administration has created 300,000 jobs.
The BEBR survey was conducted March 13-21, with 416 respondents that included a demographic cross-section of Florida. The index used by researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150. The same questions are asked monthly by the University of Michigan in their national telephone survey.
Anne Smith writes special for Sunshine State News.
