Florida’s consumer confidence index rose marginally in September, remaining at historically low levels for virtually all types of respondents, a new University of Florida survey shows.
The index is up three points to 64, from a revised mark of 61 in August, which was only two points higher than the record low of 59 set in June 2008.
“The increase in confidence this month was mostly a rebound from very low levels in August,” said Chris McCarty, director of UF’s Bureau of Economic and Business Research and Survey Research Center, which conducted the survey.
According to the survey, Florida’s seniors, whose perceptions accounted for much of the decline in August, remain pessimistic about the economy in both the short and long run. Confidence levels of those over 60 are at “record lows,” McCarty said.
The ongoing national debate over spending cuts and entitlements is only partly responsible for sluggish confidence levels. Florida’s unemployment rate also remained stuck at 10.7 percent for the past three months. In addition, a loss of government jobs along with those in other sectors offset employment gains in a rebounding tourist industry. Moreover, tourism itself could face temporary setbacks if economic troubles worsen in Europe.
Other indicators affecting the perceptions of Florida consumers are, the median price of an existing single-family home which went up slightly in August to $137,500. A drop in gas prices since August was just a typical market adjustment following Labor Day, McCarty added.
McCarthy also noted the volatility of the stock market also could be taking a toll on confidence.
Consumer confidence also is expected to remain lackluster until next year, according to the UF report, given the looming deadline of Nov. 23 for the announcement of a deficit reduction plan by the super-commission in Congress. This is likely to reignite debates over federal spending and again shake consumer confidence, the report noted.
