Consumer confidence hits record low in Florida

GAINESVILLE — Consumer confidence continues to fall and fall and fall, but the bottom might be in sight.

The University of Florida’s statewide index for June hit 57, down six points from May, and the lowest reading ever.

Meanwhile, the Conference Board’s national Consumer Confidence Index fell nearly 8 points to 50.4, the fifth lowest reading ever recorded.

Both reports were released Tuesday.

“These are by far the worst readings we have ever seen,” said Chris McCarty, director of the UF survey. “There is no other way to interpret these numbers other than to say that Florida consumers are hurting. Based on these results, I would have to predict consumer spending in Florida to pull back dramatically in coming months.”

Says Lynn Franco, who directs the Conference Board’s survey: “Consumers' assessment of present-day conditions continues to grow more negative and suggests the economy remains stuck in low gear. Looking ahead, consumers' economic outlook is so bleak that the Expectations Index has reached a new all-time low. Perhaps the silver lining to this otherwise dismal report is that Consumer Confidence may be nearing a bottom."

McCarty said the income tax rebate checks sent out in May and June did provide a boost to consumer spending, but most of the money went to cover increases in food and energy costs. The housing market continues to decline, though showing some signs of bottoming out, which will be critical to a recovery.

As of April, the median price of a home in Florida was down nearly a quarter from the high set in June 2006. Further declines are expected for May, June and July.

“In the near term, we do not expect consumer confidence in Florid to decline much further, and it will actually improve once gas prices decline,” McCarty said.