Rising Consumer Confidence Can't Save Retail

(Crystal Proenza is associate editor of Real Estate Florida.)

GAINESVILLE, FL-Consumer confidence in the state has risen five points over the last month to 67, according to a survey conducted by the University of Florida Bureau of Economic and Business Research. Despite the bit of positive news for the state’s struggling retail sector, experts warn that the increase of confidence may be short-lived because many retailers will have to file for Chapter 11 in the new year.

“One reason confidence has gone up is because it has been so low, reaching an all-time low at 59 this June,” says Chris McCarty, director of UF’s Survey Research Center, which publishes the monthly report based on responses from more than 400 residents telephoned at random. The rise in confidence this month has to do with the nature of the five questions within the survey, he tells GlobeSt.com. “Three of them are forward looking and two pertain to current conditions. As with the past month, consumers are confident that the new administration will resolve the economic crisis and that much of the intervention so far will work.” Florida residents have absorbed most of the bad news relating to the economy and at this point are hoping for better news in the future. However, just because a turn around is expected it does not mean people will go out and spend, says McCarty.