Florida consumer confidence in economy increases for fourth straight month

Consumer sentiment continues to get stronger in Florida, with optimism about the economy increasing for a fourth straight month.

That’s according to the University of Florida (UF) Consumer Sentiment Survey for September. Consumer confidence among Floridians increased by 1.6 points in September, climbing from a revised 76.7 points in August to 78.3 points last month. That also reflects the national trend, which saw consumer confidence jump in September by 2 points.

Recent developments by the Federal Reserve seem to have buoyed the upbeat economic outlook.

“The decrease in interest rates should boost discretionary spending, encourage business expansion through increased investment and hiring, and further enhance confidence among Floridians,” said Hector Sandoval, Director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

Florida’s employment picture is playing a key role in keeping optimism on the upswing, according to Sandoval. The unemployment rate for August came in at 3.3%, and that has remained unchanged for five straight months.

While general optimism is the feeling for the moment, the UF survey found Florida’s consumers have some mixed feelings about their own financial situations. Confidence in their own financial outlook actually decreased from 59.9 points in September 2023 to 58.5 last month. At the same time, Floridians say they’re more confident in buying big-ticket items, such as household appliances. That figure jumped from 59.6 points a year ago to 60.9 last month.

Sandoval acknowledged the impact from Hurricane Helene is yet to be seen. It remains uncertain how the storm’s full economic damage will affect consumer confidence.

“While the full impact on the state’s economy is still being assessed, it is unlikely to have lasting effects on Florida’s overall economy. However, it will affect consumer confidence among Floridians, though such impacts are typically short-lived,” Sandoval said.

“Looking ahead, we anticipate that consumer confidence will be impacted by the effects of Hurricane Helene in the coming month, likely leading to a decline among Floridians. However, as interest rate cuts begin to ripple through the economy and further reductions are announced later this year, we expect consumer sentiment to improve overall in the months ahead.”

The UF survey was conducted between Aug. 1 and Sept. 29. Researchers gathered feedback from 550 random Floridians through questionnaires administered by cellphones or online interaction.