UF survey: Consumer sentiment up in Florida as confidence reaches highest level in 3 years

Florida economy, money, etc. Stock image via Adobe.

The economic outlook among Floridians continued on an upward trajectory in August for the third month in a row, reaching heights that haven’t been seen since 2021.

The University of Florida (UF) Consumer Sentiment Survey for August showed Floridians are feeling more confident about the economy, with sentiment rising to 76.4 points last month, up 1.6 points from July. Sunshine State consumer sentiment is catching up to the national trend, which shows Americans have been increasingly confident about the economic picture for four straight months.

Hector Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research, said there are several developments leading to the increase in consumer confidence in the economy.

“Floridians grew more optimistic in August, driven by increased confidence in their personal financial situation and the national economy over the next year. Recent data shows that annual inflation fell below 3% in July. While employment figures have been revised downward, indicating a cooler labor market, second-quarter real GDP (Gross Domestic Product) growth was revised up from 2.8% to 3% due to stronger consumer spending,” Sandoval said in a prepared statement Tuesday.

He added that, as of now, there are additional indicators on the horizon that could add to increased economic confidence in Florida and across the country.

“Moreover, the Fed is expected to cut interest rates in September to prevent further weakening of the labor market. Overall, a soft landing seems achievable, matching the positive consumer expectations,” said Sandoval.

Among indicators playing into increased consumer confidence, Sandoval said, were views on personal finances and how they would shape up in the next year. That factor increased among Florida consumers from 88.7 in July to 92.6 in August, meaning Floridians felt their personal finances are going to get better over the next 12 months.

Views on the national economy were even stronger for consumers in the Sunshine State. That factor showed the strongest increase in August, rising 5.2 points from 78.4 in July to 83.6 last month. Views on national economic conditions also jumped 3.1 points.

Some economic concerns are sticking with Floridians, though. Views of personal finance in general remain sluggish as many Floridians feel they aren’t doing as well financially as one year ago. That consumer sentiment figure dropped 1.2 points from 60.1 in July to 58.9 in August.

Also, fewer people felt now is a good time to buy big-ticket household items, such as large appliances and similar items. The consumer sentiment index on purchasing household items fell from 62 in July to 58.9 in August.

Still, Sandoval said there’s plenty of reasons for Florida consumers to remain confident about the economy in general, given current conditions.

“It’s worth noting that Floridians’ expectations regarding their personal financial situation and the national economy over the next year are at their highest levels in three years. Moreover, expectations concerning the national economy over the next five years are nearly at a four-year high. These positive expectations suggest that Floridians anticipate continued economic stability and growth, which could lead to increased consumer spending, attract investment, and support business expansion,” said Sandoval.

The consumer sentiment survey was conducted with questionnaires online and through mobile phone discussions July 1 through Aug. 29. A total of 528 random Floridians from across the state took part in the survey.