Drew Dixon
For the first time in four months, consumer sentiment and an overall view of the economy are increasing among Floridians, according to the latest survey published Thursday by the University of Florida (UF).
Consumer confidence increased in May by 3.7 points, from 77.3 to 81 points. From February to April, sentiment in Florida declined.
“Consumer confidence had declined sharply in recent months, largely driven by falling spending intentions and growing pessimism about the national economy,” said Hector Sandoval, Director of the Economic Analysis Program at the UF’s Bureau of Economic and Business Research. “In May, however, the rebound in sentiment was supported by a marked improvement in both Floridians’ willingness to make big-ticket purchases and their long-term outlook on the U.S. economy.
“This shift is likely tied to the easing of trade tensions between the U.S. and China earlier in the month, which included a reduction in tariffs on Chinese imports, he continued. “These changes have likely eased some of the pessimism fueled by earlier tariff hikes.”
Floridians saw their personal finances as looking better in May compared to the same month last year, as the sentiment value increased from 68.5 to 72. Florida consumers are even more confident about buying big-ticket items for their homes such as furniture or appliances as that factor jumped from 68.5 in April to 73.9.
“These more positive views were broadly shared across sociodemographic groups, except for people age 60 and older, who reported more negative views on their financial situation,” the UF consumer sentiment report concluded.
The consumer outlook toward the future is also improving. Personal finance expectations for a year from now also increased by 1.5 points, rising from 89.1 to 90.6 in May.
While the viewpoint among consumers is improving, Sandoval said there are still some outstanding concerns.
“However, trade tensions and uncertainty around trade policy persist. While there has been some easing, the outlook remains unclear. The possibility of new tariff hikes still looms, and recent legal disputes have added further uncertainty,” Sandoval said. “Looking ahead, this continued uncertainty is likely to weigh on consumer confidence in the months to come.”
UF researchers conducted a consumer sentiment survey between April 1 and May 29, contacting 600 residents in Florida via cellphone and online for their input.
