UF consumer sentiment survey shows Floridians upbeat about economy to finish 2024

Floridians are reaching highest consumer confidence level in two years, according to new UF survey.

Florida consumers finished 2024 on a very positive note, as University of Florida (UF) researchers found attitudes toward the economy in the state improved substantially in December.

The UF Bureau of Economic and Business Research study showed Floridians were bullish on the economy to close out the year. The monthly consumer sentiment rating for December came in at 86.4, a notable 5-point increase from the November figure of 81.4, after seasonal adjustments.

“As the year ends, Florida’s consumer sentiment has seen a notable positive shift, rising nine points in the last couple of months. Notably, all three forward-looking components of the index are at their highest levels in nearly five years,” said Hector H. Sandoval, Director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

“The previous highs for each component were recorded in February 2020, just before the pandemic began. At that time, Florida’s unemployment rate was nearing historically low levels, and consumer sentiment was at its highest point in nearly two decades.”

Floridians’ views on whether now is a good time to buy a major household item, such as appliances, increased to 72.9 points, a 7.7-point jump from November’s figure of 65.2. Sandoval noted that figure was strong among Floridians with annual incomes below $50,000.

But there still is some wariness of the economy after years of inflation. Current views of personal financial situations compared to a year ago decreased to 61 points, down from 61.9 points in November.

“Inflation has cooled, but interest rates remain high. Nonetheless, with expectations of new import tariffs from the upcoming administration, it’s not surprising that consumers see now as a good time to purchase big-ticket items, anticipating price changes due to potential tariffs,” Sandoval said.

Other key indicators were upbeat, including expectations of personal finances a year from now. Floridians believe their personal finances will grow in the next year, with that figure coming in at 102.5, up from 95.9 in November. Confidence in the general U.S. economy was also strong, as that figure settled at 99.1, an 8-point increase from November’s 91.1.

“However, looking ahead, there are several challenges. While inflation has cooled, it remains above the Fed’s 2% target, which is likely to slow interest rate cuts next year, keeping borrowing costs high for a longer period,” Sandoval said.

“Moreover, the potential for trade tariffs under the incoming administration is something to watch, as they could make imported goods more expensive for businesses and consumers, thereby increasing inflationary pressure. Monitoring consumer sentiment will be crucial to gauge how consumers feel about the economy as we move into 2025.”

The consumer sentiment survey was conducted by UF researchers between Nov. 1 and Dec. 23 by contacting 549 Florida residents. Those researchers provided a questionnaire to residents over mobile phones or online.