Drew Dixon
A University of Florida survey assessing consumer confidence in the state’s economy measured a notable decline in August.
UF researchers found that consumer sentiment fell 3.5 points to 80.6, down from July’s revised figure of 83.7.
The survey is overseen by Hector H. Sandoval, Director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research. He said the latest decline in consumer sentiment is one of the most dramatic drops this year.
“This marks the second-largest monthly decline in sentiment this year, surpassed only by the 5.9-point drop recorded in March. Moreover, the July figure was revised slightly downward from 83.9 to 83.7, now resulting in a monthly decline in sentiment,” Sandoval said.
“August’s decline reflects growing pessimism about both current and future personal financial conditions, along with a pullback in spending intentions. Together, these trends suggest that Floridians may be bracing for tougher economic conditions and are likely to be more cautious with their discretionary spending.”
The steep drop in August cuts against recent trends, which saw three straight months from May through July with increasing consumer sentiment in Florida.
The survey uses several different metrics to weigh Florida’s overall economic outlook. Personal opinions on current financial situations fell the sharpest compared to a year ago, decreasing by 4.6 points from 76.3 in July to 71.7 last month.
More Floridians also say they’re hesitant to buy a major household item, such as appliances or a car. That figure fell 3.5 points, dropping from 78.5 in July to 75 in August.
Floridians’ expectations of their personal financial situations a year from now also fell 3.3 points, going from 91.3 in July to 88 in August.
Inflation remains stubborn, likely contributing to the nagging pessimism among Florida consumers. That may not subside any time soon, Sandoval said.
“Looking ahead, we expect consumer sentiment to remain weak in the coming months as long as current economic trends and policy uncertainty persist,” Sandoval said.
UF researchers conducted the consumer sentiment survey between July 1 and Aug. 28. with a total of 606 Floridians responding to questionnaires online and through cellphone contact.
