Florida’s consumers confidence remained virtually stagnant with no clear indication that the economic recovery is taking hold or entering into a double dip recession, a new University of Florida survey revealed. The index moved up by one point to 67 in August.
“Consumer confidence is entrenched at a relatively low level,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “With the exception of a jump in April due almost entirely to the housing and appliance rebate programs, consumer confidence has been stuck in the upper 60s to low 70s for the past year. We are in the economic doldrums.”
Two of the five components of the index increased, while one decreased and two remained unchanged.
Consumers perceived that their personal finances are improved compared to a year ago and the indx rose four points to 52 from a record low in July, while perceptions of personal finances a year from now rose three points to 78.
The increased optimism about personal finances is tied to the containment of the oil spill and the perception that Florida beaches for the most part are no long affected, although its long-term effects of the spill are still unknown, McCarthy believes.
Remaining unchanged were perceptions of U.S. economic conditions over the next year at 61 and perceptions of U.S. economic conditions over the next five years at 70. The only component to decline was perceptions about whether it is a good time to buy big-ticket consumer items, which fell two points to 73.
“While the mix among the five components has changed, overall consumers’ attitudes reflect other economic indicators that don’t show a clear path out of recovery or back to another recession,” McCarty said.
Unemployment, the stock market and housing prices all add to the state’s economic uncertainty, he said.
Florida’s unemployment rate still remains high, having risen to 11.5 percent in July.
Other bad news was the fall in housing prices in July to a median price of $138,000, wiping out the gains realized in spring from the federal rebate program.
National, consumer confidence mirrors Florida, increasing marginally in the month of August.
