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Consumer confidence rises in Florida

By Palm Beach Business.com

DELRAY BEACH — Consumer confidence edged higher nationally during October while unexpectedly surging in Florida according to separate reports released Tuesday.

The Conference Board’s consumer confidence index increased to 50.2 from 48.6 in September.  Both consumers view of the present economy and expectations for the future moved slightly higher during the month.

Meanwhile, the University of Florida ‘s consumer confidence index jumped 6 points to 74, its highest reading since April.  Consumers’ expectations for the future, plus their view of whether this is a good time to buy a big ticket item all gained.

“Consumer confidence, while slightly improved from September levels, is still hovering at historically low levels,” said Lynn Franco, director of the Conference Board Consumer Research Center. “Consumers’ assessment of the current state of the economy is relatively unchanged, primarily because labor market conditions have yet to significantly improve. And, despite the uptick in expectations, consumers continue to be quite concerned about the short-term outlook. Both present and future indicators point toward more of the same in the coming months.”

Reasons for the jump in the UF survey were unclear. Survey Director Chris McCarty particularly noted a sharp increase in confidence among senior citizens, which was especially striking because of the recent announcement that Social Security recipients will not get a cost of living increase next year. Other factors might be the midterm elections, low interest rates and the moratorium on bank foreclosures.

“My thinking had been that consumer confidence would remain mired in the upper 60s and low 70s until there was a clear path to economic recovery,” said McCarty.  “As we get closer to the holiday season consumers should expect increases in both gas and food prices which will likely affect consumer confidence and holiday sales.  Given the large increase in confidence this month I expect a slight decline next month, barring some significant change in the economic climate.”

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DELRAY'S ONLINE BUSINESS AND COMMUNITY NEWSPAPER — PALM BEACH BUSINESS.COM
   
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OCTOBER 26, 2010 click to go home
 
         
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