Consumer sentiment sours among Floridians in March as national developments dim confidence

Consumer sentiment increased for the fifth straight month in February.

Consumers are starting to lose confidence in the Florida economy.

A new consumer sentiment survey published by the University of Florida (UF) shows a substantial drop in sentiment in March amid turbulence in the national economy.

Consumer sentiment in the state fell 6.6 points per UF’s scale, falling from 84.7 in February to 78.1. It’s the second month in a row that consumer sentiment declined in the Sunshine State and reflects a similar decline in the national consumer sentiment, which fell by 7.7 points.

“The decline in sentiment was observed across all demographics, but it was particularly pronounced among Floridians with an annual income over $50,000,” said Hector Sandoval, Director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

“This pessimism stems from reduced spending intentions and concerns about future economic conditions. The last time consumer confidence dropped by more than 6 points was in 2020, when economic conditions worsened as the pandemic took hold.”

February’s consumer sentiment report for Florida began the slide in consumer confidence. That month saw a drop of 2.6 points, settling in at 86.9 points before seasonal adjustments. But March’s decline was more pronounced and every key economic indicator used to compile consumer sentiment fell, Sandoval said.

Floridians are definitely more pessimistic about the economic outlook. Their opinions on personal financial situations fell from 68.7 to 67.8. The most dramatic drop was in the opinion on whether now is a good time to buy a household appliance. That figure plunged 9.6 points, from 77.9 to 68.3 points.

Personal views of their own financial situations a year from now also dipped sharply for Floridians, falling 7.1 points, from 98.4 to 91.3. Outlooks on U.S. economic conditions over the next year and expectations of U.S. economic conditions over the next five years both fell by nearly 8 points.

“The decline in sentiment is not entirely unexpected, as various factors have been weighing on consumers. These include falling stock markets, which affect retirement accounts, ongoing concerns about tariffs and inflation, and government layoffs. Additionally, the Fed’s decision to keep interest rates steady, along with their updated projections for slower economic growth, has likely further undermined consumer confidence,” Sandoval said.

Sandoval said that pessimism may not subside soon.

“Looking ahead, the sharp decline in spending intentions, combined with pessimistic expectations about future economic conditions, suggests that Floridians are bracing for economic uncertainty. They are anticipating challenges and are likely adopting more cautious financial behaviors. We expect consumer sentiment to remain weak in the coming months as this uncertainty persists,” Sandoval said.

The consumer sentiment survey was conducted between Feb. 1 and March 27. UF researchers posed questionnaires to 526 Floridians online and on mobile phones.