Consumer confidence surges in April

By Palm Beach Business.com

DELRAY BEACH — Unemployment continues to rise. The housing market continues to be in the tank. But consumers have a resurgent sense of confidence in the economy, according to separate reports released Tuesday.

The Conference Board Consumer Confidence index rose better than 12 points to an April reading of 39.2 as expectations for the future surged nearly 20 points.

Meanwhile, the University of Florida’s statewide consumer confidence index jumped 6 points to a reading of 71 as Floridians perception about the present economy and future expectations surged.

UF survey director Chris McCarty said the magnitude of the change was somewhat surprising, considering the economy has yet to hit bottom.

“There are certainly some signs that economic conditions are improving, such as a potential bottom in house price declines,” McCarty said. “However there are still many negatives, such as the economy continuing to shed jobs, particularly here in Florida. Consumers seem to have absorbed most of the bad news and at least are not seeing things getting much worse.”

Lynn Franco, director of The Conference Board Consumer Research Center, said the numbers contained good and not so good messages. "The sharp increase in the expectations index suggests that consumers believe the economy is nearing a bottom, however, this Index still remains well below levels associated with strong economic growth."

Consumers' appraisal of present-day conditions improved moderately in April. Those claiming business conditions are "bad" declined to 45.7 percent from 51.0 percent, while those claiming business conditions are "good" increased to 7.6 percent from 6.9 percent.

The percentage of consumers stating jobs are "hard to get" decreased to 47.9 percent from 48.8 percent in March, however, those saying jobs are "plentiful" edged down to 4.5 percent from 4.7 percent.

Consumers' short-term outlook improved significantly in April. Those anticipating business conditions will worsen over the next six months declined to 25.3 percent from 37.8 percent, while those expecting conditions to improve increased to 15.6 percent from 9.6 percent in March.

The employment outlook was also considerably less pessimistic. The percentage of consumers anticipating fewer jobs in the months ahead decreased to 33.6 percent from 41.6 percent, while those expecting more jobs increased to 13.9 percent from 7.3 percent. The proportion of consumers anticipating an increase in their incomes edged up to 8.0 percent from 7.8 percent.

McCarty said consumer confidence in Florida should continue to improve, barring a major bankruptcy in the national economy. The next major test will come after the Legislature passes the budget and consumers begin to assess how various fee and tax increases will affect their pocketbooks and those who depend on state spending for the livelihood see what the future might bring.