Largely due to the sealing of the BP oil well, consumer confidence in Florida rose slightly to 68 in September, although overall confidence remains four points lower what it was this time last year, a University of Florida survey reported on Tuesday.
“With the Gulf oil spill largely behind us, consumer confidence has begun to recover to pre-spill levels,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “This is by no means a return to a state of optimism.”
Although this month’s consumer confidence is 10 points below the April reading of 78, all five of the index components posted gains. Rising four points were expectations of U.S. economic conditions over the next year, to 62, and expectations of U.S. economic conditions over the next five years, to 73. Rising one point were perceptions of personal finances now compared with a year ago, to 52, and expectations of personal finances a year from now, to 79. Perceptions of whether it is a good time to buy big-ticket items increased two points to 76.
Florida’s jobless rate edged up in August to 11.7 percent, 0.2 percent over the month before, but below its high of 12.5 percent in March.
On the positive side, job growth is expected, McCarty said. Companies have accumulated enormous amounts of cash and are waiting for some indication about where to invest it for growth, he said.
“Unfortunately, the job losses from this past recession have been so high that it will take many years to return to pre-recession levels,” he said. “Many jobs will not come back. Persistently high levels of unemployment will continue to be an anchor on consumer confidence, which we anticipate to remain near its current level over the next several months.”
The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for September was 419 responses.
