A UF survey has found that Florida residents are willing to spend more than they have since the Great Recession.
The monthly study revealed that consumer confidence, a figure measuring citizens’ certainty in the economy and their personal finances, hit 86 points this past November.
Chris McCarty, director of the UF Survey Research Center, said the increase could be attributed to factors such as a statewide increase in investing and lower gas prices.
“There are several indicators,” McCarty said. “A lot of people are investing in the stock in Florida, housing prices in Florida have held onto their value, oil and gas prices have fallen and interest rates have fallen.”
The study was conducted from Nov. 1 to 20 and received responses from 414 Floridians across the state.
High consumer confidence also foreshadows more spending during the holiday season, McCarty said.
“When consumer confidence is up, people are more in a buying mood,” McCarty said. “In general, people are more optimistic.”
Floridians’ consumer confidence has not been this high since March 2007, a few months before the start of the 2007-2008 financial crisis.
While the survey reflected an overall increase in consumer confidence, McCarty said the same increase may not have been reflected in a study focused on college students.
“College students are in a similar boat as the senior age group. They don’t experience any dramatic increases in their income,” he said.
Joshua Larsen, a UF mechanical engineering senior, said he doesn’t want to spend too much money.
“I have the essentials and don’t really want anything in excess,” the 22-year-old said. “I have spent more in parts, but that wasn’t really holiday shopping.”
Consumer confidence might take a punch next year. McCarty said pressure from the Federal Reserve raising short-term interest rates could cause consumer confidence to decrease.
According to Florida Consumer Sentiment Index:
- In October, Florida’s unemployment rate fell .1 percent to 6.0, higher than the national unemployment rate of 5.8 percent.
- 34,000 jobs were created in Florida in November compared to September, while the labor force rose by 22,000.
- The median price of a single family home dropped to $177,000.
[A version of this story ran on page 9 on 12/3/2014]
