Drew Dixon
Consumer Sentiment for Floridians started 2025 with increased optimism, according to the latest survey conducted by the University of Florida (UF).
The UF Bureau of Economic and Business Research research showed that Sunshine State residents’ consumer confidence increased in January. The consumer sentiment index increased from 86.7 in December to 86.9 in January, indicating a growing positive outlook for Florida’s economy, though there are some outstanding worries.
The UF survey shows increasing consumer sentiment for the third consecutive month. Before November and the U.S. presidential election, consumer sentiment had been sliding among Floridians. However, the last two months of 2024 have shown increased optimism, though January’s uptick is nominal compared to November and December.
But with 2024 behind them, Florida consumers are looking forward to what they believe are better days.
“Floridians begin the year with improved views about current economic conditions but concerns about the future. The slight increase in consumer sentiment (in January) was driven by improved views of current conditions, particularly spending intentions. However, expectations for the future declined, reflecting concerns about potential challenges ahead,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
“This pessimism aligns with the anticipated decision by the Federal Reserve to pause interest rate cuts for the first time since they began lowering borrowing costs in September. This pause suggests that easing may take longer, as inflation remains persistently above the Fed’s 2% target, leaving households, particularly borrowers, more vulnerable to the combined effects of inflation and high interest rates.”
Some elements that factored into the consumer confidence survey were muted in Floridians’ responses in January. Expectations of personal financial situations a year from now decreased from 102.6 in December to 102.3 in January.
The outlook of overall economic conditions across the U.S. over the next year also took a dip, falling from 99.4 in December to 96.5 in January. Expectations for the U.S. economy over the next five years also fell from 96.5 in December to 95.2 in January.
Despite some doubts, Floridians’ opinions about current economic conditions were upbeat compared to a year ago, rising from 61.6 in December to 62.6 in January. Optimism about buying major household appliances, such as refrigerators, also warmed, going from 73.3 in December to 78 in January.
Sandoval said that while Donald Trump’s new presidential administration settles in and Americans adjust, an air of uncertainty lingers in 2025.
“Looking ahead, as immigration and trade policies under the new administration take shape, we anticipate increased uncertainty due to the unclear economic impacts of these policies. This uncertainty is expected to be reflected in consumer sentiment. Therefore, monitoring consumer sentiment will be crucial to assess how these policy changes may influence consumer attitudes and their economic outlook,” Sandoval added.
The consumer sentiment survey was conducted in Florida from Dec. 1 to Jan. 30, and UF researchers contacted 578 residents, who were surveyed by cellphone or online questionnaires.
