Consumer confidence rises nationally but sinks in Florida
By David Sedore, Palm Beach Business.com
DELRAY BEACH — Consumer confidence jumped sharply nationally in March but slipped in Florida, according to separate reports released Tuesday.
The Conference Board’s consumer confidence index came in at 52.5, up more than 6 points from the February reading. But record high unemployment pushed the University of Florida’s state index to fall by 3 points to 70. The UF index had risen in January and February.
Despite the March jump, consumers continue to fret over the economy and jobs market and are not optimistic about the immediate future, said Lynn Franco, director of the Conference Board Research Center, a private business group.
“Overall, consumer confidence levels have not changed significantly since last spring," Franco said.
Unemployment in Florida hit 12.2 percent in February, the highest rate recorded since the state began tracking joblessness in 1970. That period covers four previous recessions. McCarty said those numbers contributed to the decline among Floridians.
“While we had expected a decline in overall consumer confidence in March the source of the decline was unusual,” UF Survey Director Chris McCarty said. “Personal finances seem to be stabilizing, although at historically low levels. Short-term expectations of the U.S. economy are a bit more optimistic. But Floridians are skeptical of the long run health of the economy and are particularly negative about investing in major purchases, such as a car or large appliance, that are often purchased through a loan or on credit.”
Much of Florida’s economy historically has been driven by population growth, which has primed the markets for real estate, construction and services jobs. That’s made Florida particularly vulnerable in the downturn. The loss of jobs — nearly 900,000 over the past two years — caused many residents to move out and fewer to move in, weakening the economy further and making a recovery more difficult.
“The hope is that population growth will follow the pattern it has in past recessions and will pick up again this year. If that does not happen then Florida will struggle to regain many of the jobs lost during this recession,” McCarty said.
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