Drew Dixon
Consumer confidence fell across Florida in May, according to a new monthly consumer sentiment survey published by the University of Florida (UF) Bureau of Business and Economic Research.
Consumer sentiment dropped slightly last month, falling from a revised figure of 73.3 in April to 73.1 in May.
“The decline in consumer sentiment was driven by Floridians’ perceptions of current economic conditions. Although inflation is not far above the Fed’s 2% target since peaking at 9.1% in 2022, progress against inflation has slowed down, demanding Floridians to make further adjustments to budgets and spending plans,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
The latest figure also represents some turbulence in consumer confidence in Florida’s economy. April’s numbers were up from March, and that month saw an increase over February.
According to the newest survey results, Floridians are less certain about their own finances compared to a year ago. Confidence in their own financial situation dipped to 59.9, down from the figure of 61.2 at this time in 2023.
Floridians were less assured that now is a good time to spend on major purchases such as household appliances. That rating fell year-over-year from 63.9 in 2023 ago to 62.3.
Residents in the Sunshine State showed mixed feelings about the economic outlook. The survey showed that expectations about future finances in the next year improved from 82.6 from a year ago to 85.3. Meanwhile, Floridians saw the national economic picture as improving in the next year, as that sentiment slightly improved from 76.2 a year ago to 76.3 in May.
Long term, though, Floridians were more skeptical. Their view of the economy over the next five years soured a bit. That sentiment decreased from 82.6 a year ago to 81.9 last month.
Sandoval said the views of the economy in Florida are likely to remain mixed through the remainder of 2024.
“Since the beginning of the year, sentiment among Floridians has fluctuated, with both increases and decreases. Therefore, overall sentiment has not gained significant traction so far,” Sandoval said.
“Looking ahead, we anticipate consumer sentiment to remain around the same level in the coming months, especially given the slowdown in the progress against inflation. Thus, we do not anticipate any significant changes in the Fed’s policy regarding interest-rate cuts.”
The UF survey was conducted from April 1 through May 30. Researchers randomly surveyed a total of 555 residents of the Sunshine State through cellphone and online questionnaires.
