Drew Dixon
Consumer sentiment among Floridians ticked up for the third straight month in July.
The University of Florida (UF) consumer sentiment survey shows residents of the state are more encouraged about the economy. But it was a modest increase in July, going up by one-tenth of a point, settling at 83.9, slightly up from June’s revised figure of 83.8. The national figure for July also increased in consumer confidence by 1.1 points.
Hector H. Sandoval, director of the Economic Analysis Program at the University of Florida’s Bureau of Economic and Business Research, said. At the same time, July’s consumer sentiment figure was an increase, but it needs to be kept in perspective.
“Overall, sentiment remained essentially unchanged in July,” Sandoval said. “On the positive side, spending intentions continued to rise among Floridians. However, this month’s reading also points to some underlying concerns, including a slight weakening in views about personal finances and a drop in long-term expectations for the national economy.”
State residents are mixed in their opinions on current economic conditions. Views on personal finances compared to a year ago dipped from 77.1 in June to 76.7 points. Seniors older than 60 and residents with annual incomes exceeding $50,000 looked at that element more favorably.
Meanwhile, residents were more optimistic about now being a good time to buy a major household appliance. That figure increased 2.2 points to 79.5. That happens to be the highest level of optimism in that factor in five years.
“Spending intentions began rising sharply after the presidential election and continued into the early months of this year,” Sandoval said. “A notable dip in March signaled growing caution, likely driven by trade policy uncertainty. However, since April, spending intentions have steadily rebounded and are now back to levels seen at the start of the year. This recovery is an encouraging sign, as strong consumer spending remains a key driver of economic growth.”
While economic policies and maneuvers by President Donald Trump rattled consumer confidence earlier this year, Sandoval said those factors seemed to have evened out.
“Looking ahead, trade policy appears to be stabilizing, with agreements now in place with several major partners, including the European Union,” Sandoval said. “This could support a further rebound in spending intentions and sentiment. However, inflation remains a key risk. Even a temporary surge could shake consumer confidence. It also remains to be seen how the newly adjusted tariff levels will affect the broader economy.”
UF researchers interviewed 452 Floridians between June 1 and July 24 to compile data for the consumer sentiment report. Those residents were provided questionnaires online or on their cellphones at that time.
