Confidence among Florida consumers soars in April

By Palm Beach Business.com

DELRAY BEACH — Perhaps it’s the natural optimism that comes with spring. Perhaps it was the March jobs report that saw employers go on the biggest hiring binge in nearly three years.

Whatever it was, something caused consumer confidence to surge unexpectedly this month, according to separate reports released Tuesday.

The Conference Board Consumer Confidence Index jumped nearly six points to an April reading of 57.9 as consumers perception of the economy improved solidly and their expectations for the future jumped.

Meanwhile, the University of Florida’s consumer confidence index for the Sunshine State gained six points in April to 77, the highest reading in more than a year.

Said the Conference Board’s Lynn Franco: "The index is now at its highest reading in about a year and a half (Sept. 2008, 61.4). Consumers’ concerns about current business and labor market conditions eased again. And, their outlook regarding business conditions and the labor market was also more positive than last month. Looking ahead, continued job growth will be key in sustaining positive momentum."

Said UF Survey Director Chris McCarty: “Florida’s consumers have been full of surprises the past several months. Much like the reading for January, this rise in confidence was completely unexpected.  Last month, Florida broke its all time record for unemployment as 12.3 percent.  Yet Floridians are far more optimistic this month than last.”

In the Conference Board survey, consumers’ appraisal of present-day conditions was slightly more positive in April. Those claiming conditions are "good" increased to 9.1 percent from 8.5 percent, while those claiming business conditions are "bad" declined to 40.2 percent from 42.1 percent.

Consumers’ appraisal of the labor market also improved. Those saying jobs are "plentiful" increased to 4.8 percent from 4.0 percent, while those saying jobs are "hard to get" decreased to 45.0 percent from 46.3 percent.

The percentage of consumers expecting business conditions will improve over the next six months increased to 19.8 percent from 18.0 percent, while those expecting conditions will worsen declined to 12.6 percent from 13.6 percent.

Consumers were also more optimistic about the job outlook. The percentage of consumers anticipating more jobs in the months ahead increased to 18.0 percent from 14.1 percent, while those anticipating fewer jobs declined to 20.0 percent from 21.4 percent

McCarty cited the combination of the $17.5 million appliance rebate program and tax rebates for homebuyers for the surge in Florida. The big question, he said, is what happens when the rebates run out in May and the stimulus dollars are spent?

Consumers are clearly optimistic that the U.S. is in recovery and that the economy will at least not get any worse, McCarty said.  Therefore some of the spending may be pent up demand from households that were cautious about spending when the recession was at its height and when job losses were on the rise.  Although long term unemployment remains a serious problem, in the near term it appears that layoffs have mostly stopped.