Drew Dixon
Consumer sentiment among Floridians has ticked up for the second month in a row in the face of decreasing inflation.
The rise reflects economic expectations that haven’t been seen in three years, according to the latest monthly report from the University of Florida (UF) Consumer Sentiment Survey.
The July consumer sentiment figure increased to 74.4 points, up by 1.2 points from a revised June figure of 73.2 points. The Florida optimism among consumers bucks the national trend, which saw consumer confidence drop for four straight months as of July.
“It appears that consumer sentiment in Florida has gained traction over the last couple of months,” said Hector Sandoval, Director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
“Notably, future economic expectations are at their highest levels since summer 2021, reflecting positive economic prospects among Floridians. Moreover, as inflation recedes, it is likely that the Fed will begin cutting interest rates later this year, which could further enhance economic conditions.”
Viewpoints of personal financial well-being are on the upswing among Floridians, according to the report. Opinions about personal financial situations among Sunshine State residents jumped 1.8 points from a year ago, increasing from 58.6 to 60.4. It was the most positive uptick in the monthly report.
Florida consumers also warmed to larger household purchases. More Floridians feel now is a good time to make a purchase on a household appliance or other large-ticket price tag item for their homes. That figure jumped from 62.1 a year ago to 62.6.
“Floridians’ growing optimism aligns with the current economic outlook. Inflation seems to be receding, with recent data showing a decline in June. The Consumer Price Index (CPI) fell to 3%, while the Personal Consumption Expenditure (PCE) Price Index — the Fed’s preferred measure of inflation — dropped to 2.5%. Economic growth also accelerated in the second quarter, driven by increased consumer spending, with an annual growth rate of 2.8%. Additionally, while there are signs that the labor market is gradually cooling, unemployment remains low by historical standards,” Sandoval said.
“Looking ahead, given the current economic outlook, we expect consumer sentiment to continue improving gradually over the coming months.”
The consumer sentiment survey was conducted from June 1 through July 25 as UF researchers contacted 502 Floridians through online or mobile phone questionnaires.
