According to a study from the University of Florida released Tuesday, consumer confidence rose this month in Florida and is now higher than it has been since August 2007. The study found consumer confidence rose 2 points to 81 in May.
The last time confidence was this high was August 2007 when it was 82, shortly before the Great Recession began, said Chris McCarty, director of UFs Survey Research Center in the Bureau of Economic and Business Research.
The study indicated Floridians are growing increasingly optimistic about the economy. More of them believe their personal finances will improve over the next year while residents in the Sunshine State also believe the national economy will do better next year and down the road.
But Floridians remain convinced their personal finances are perilous. Over the past year, fewer Sunshine State residents believe they are better off financially than they were a year ago. The index dropped in this category, from 71 in April to 68 in May. The number of Floridians who felt confident buying an expensive product like a car also dropped on the survey, from 90 in April to 89 in May.
McCarty pointed to increased optimism among all ages of Florida consumers.
Aprils increase was largely due to increased confidence among respondents under age 60 who were optimistic about their personal finances and U.S. economic conditions, McCarty said, adding that older Floridians feel much better about the long-term economy. The survey found a 15-point jump in the index on how Floridians 60 and over feel about the national economys prospects in the next five years.
As the headlines turn to news other than budget cuts and possible changes to Social Security, consumer confidence improves for Floridians, McCarty insisted. This is especially true for seniors.
McCarty pointed to other factors which have helped raise consumer confidence in Florida. These included the recent budget increase, the stock markets growth, the state unemployment rate continuing to drop and the housing market rebounding. McCarty warned that federal sequestration could negatively impact the economy and undermine consumer confidence in the months to come.
Our expectation is that the effects of sequestration will be more fully realized as the summer progresses and confidence will likely stay the same or pull back slightly, McCarty said. For now, optimism among Floridians is growing.
The study of 410 Floridians was taken from May 13 through May 23.
Tallahassee political writer Jeff Henderson wrote this story exclusively for Sunshine State News.
