Consumer confidence has reached a five-year high, but future optimism currently sits with how individuals view the 2012 presidential contest and less with the looming reality of the nation hitting the fiscal cliff, according to a University of Florida report.
The report released Tuesday reveals the state's consumer confidence index jumped to a five-year high of 79 -- up three points from a revised August reading of 76.
The monthly consumer confidence numbers from UFs survey research center at the Bureau of Economic and Business Research indicated that supporters of President Obama are more optimistic about the future, with backers of Republican presidential candidate Mitt Romney envisioning the economy sinking back into recession.
October will be an interesting month for consumer confidence, said Chris McCarty, the survey director for the center.
The presidential debate on October 3rd will focus on domestic policy and will almost certainly include a direct question about the fiscal cliff in January. Those Floridians who are still not aware of the potential effects of the looming cuts and tax increases will certainly know about them after that.
How Floridians react to the debates, with the economy expected to be center stage, will largely determine consumer confidence as we get past the election and into the holiday shopping season, McCarty added.
Gov. Rick Scott noted the report -- which showed Floridians had better perceptions of their finances than a year ago and expectations of an improved economy in both one and five years -- as a sign that efforts to cut regulations and reduce state spending has helped the improved outlook by Floridians.
While we still have more work to do, we see that our economy continues to improve, Scott stated in a release.
Last week, we learned that 28,000 more Floridians found jobs in the private sector in August and are now able to provide for their families. The fact that Floridas consumer confidence is at a five-year high is more good news and evidence that our state is moving in the right direction.
McCarty noted that the last time consumer confidence was at a similar point was in October 2007.
At that time, confidence was on its way down as the housing crisis was getting underway, McCarty stated.
This months index comes at a time when the economy is still in recovery. Much of the increase in confidence in September was from lower income households and from seniors. Some of this may have to do with the elections around the corner and anticipation of what it will mean for the future of entitlement programs. So far, news about the potential consequences of the fiscal cliff has not unnerved Floridians.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
