Floridians More Upbeat About U.S. Economy

Consumer confidence in Florida increased for a second consecutive month in June, rising two tenths of a point from a revised reading of 69.1 in May. Consumer confidence increased throughout the country by 5.2 points.

According to Hector H. Sandoval, head of the Economic Analysis Program at UF’s (University of Florida) Bureau of Economic and Business Research, “the increase in June’s confidence is largely driven by Floridians’ anticipation of national economic conditions in the long run.” However, it’s important to note that Florida residents’ opinions on their intentions to spend money on discretionary items have been going higher and have now hit their highest level since October 2021.

Three of the index’s five components are up, one is unchanged, and one is down.

Floridans’ views on the state of the economy in June were divided. Views of current personal financial situations versus those from one year ago dropped 2.6 points, from 64 to 61.4, According to a recent article by Kerry Smith of Florida Realtors.

Opinions about whether it is a good time to buy a large household item, such as an appliance, however, climbed marginally from 61.9 to 62.3 by four tenths of a point.

According to Sandoval, “the most recent shifts in consumers’ perceptions of whether it’s a good time to buy a big-ticket item coincide with the recent easing of inflation as well as the Fed’s unanimous decision to hold rates steady in mid-June.” “The Fed normally fights inflation by raising rates, which leads to tighter financial conditions, including higher borrowing costs. However, increased spending intentions show that consumers are prepared to raise their spending, which is encouraging for the economy.

Future expectations: Personal finance expectations increased four tenths of a point, from 83.2 to 83.6, but U.S. economic conditions forecasts stayed the same, at 66.9.

Sandoval notes that all segments of Floridians evaluated in the study share the same forecast for the U.S. economy over the next five years, which increased by 3.3 points from 69.2 to 72.5 in the June reading.

“We anticipate further gradual improvements in consumer sentiment,” Sandoval asserts, “considering the positive economic conditions in Florida, including a strong labor market and an unemployment rate holding steady at 2.6% since January 2023.”

The original article can be found on Florida Realtors