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Consumer confidence dips nationally and in Florida

By Palm Beach Business.com

DELRAY BEACH — Consumer confidence fell back in March nationally and in Florida despite an increasingly positive view of the present economy, according to separate reports released Tuesday.

The Conference Board’s Consumer Confidence Index fell to 70.2 in March from 71.6 a month earlier as consumers’ improved perceptions about the current economy were overshadowed by a more pessimistic longer term view.

Meanwhile, the University of Florida’s statewide consumer confidence index slipped two points to 74 in March, again as consumers viewed the economy in the long term less optimistically than they did in February.

"Consumer Confidence pulled back slightly in March, after rising sharply in February,” the Conference Board’s Lynn Franco said. “The moderate decline was due solely to a less favorable short-term outlook, while consumers’ assessment of current conditions, on the other hand, continued to improve.  The Present Situation Index now stands at its highest level in three and a half years (61.1, Sept. 2008), suggesting that despite this month's dip in confidence, consumers feel the economy is not losing momentum." 

Chris McCarty, director of the UF survey, said the Florida index is following the same pattern as a year ago — rising confidence during the winter only to retreat in Spring. Last year, it was the nuclear disaster in Japan and the Arab Spring uprising that shook up the economy.  This year, the causes will be different but the results likely the same.

“The big drag on consumers will increasingly be gas prices which have increased more than 15 cents a gallon in the past month,”  McCarty said.  “Prior to the housing market unraveling and the beginning of the past recession there  was a period of more than two years where gas prices were driving consumer confidence.  With increases in gas prices likely over the next few months, consumers, particularly those with lower incomes, will feel the impact.  This will lead to lower confidence and perhaps lower spending than that associated with the higher January and February confidence results.”