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Florida's consumer confidence lags improving economy

By Palm Beach Business.com

DELRAY BEACH — Consumer confidence dipped statewide in April, despite an improving labor and housing markets, while holding steady nationally, according to separate reports released Tuesday.

The University of Florida’s statewide consumer confidence index dropped two points to an April reading of 73. All five components that make up the index took a dip, with expectations for economy over the next year falling the most, and with respondents over 60 the most pessimistic.

“As we expected consumer confidence declined again in April, the third month of declines,” UF survey director Chris McCarty said. “While we are in many ways repeating the pattern from last year, the levels of consumer confidence among Floridians are higher overall.  This time last year the index was at 68 compared to 73 this month.”

Meanwhile, the Conference Board’s national consumer confidence index stood at 69.2 for April compared with 69.5 for March.

“Consumer Confidence was virtually unchanged in April, following a modest decline in March,” the Conference Board’s Lynn Franco said. “As was the case last month, the slight dip was prompted by a moderation in consumers’ short-term outlook, while their assessment of current conditions continued to improve. Overall, consumers are more upbeat about the state of the economy, but they remain cautiously optimistic.”

McCarty noted that economic data for the state has been a mixed bag this month. The latest job numbers show an improving labor market; housing prices actually moved higher as well, although the gain could prove temporary. But gasoline prices have surged and stocks have dropped off their March highs, although they’re still up for the year.

“Looking ahead there will be several factors that could turn confidence around.  If the employment situation continues to improve, that will raise confidence for a large number of Floridians,” McCarty said.  “Continued gains in housing will also bolster confidence, although increased foreclosures and short sales may result in a decline in upcoming months. 

"As the elections in November pick up and we near the end of the year the economy will be front and center, and discussions of deficit-reduction will be rekindled.  This will negatively impact many Floridians, particularly seniors.”