Floridians’ Consumer Sentiment Remains High

GAINESVILLE, FL—Consumer sentiment among Florida residents increased 2.6 points and crossed the elusive 100 barrier, according to a report released by the University of Florida Bureau of Economic and Business Research.

The bureau’s consumer sentiment index for May was 100.6, up from a revised figure of 98 registered in April. May’s consumer sentiment was only the second time since March 2002 that consumer sentiment crossed the 100 threshold, the latest being the 101.3 posted in January 2018.

The consumer sentiment report was a mixed bag—three index components increased, while two decreased. Of the two components that decreased, perceptions of personal financial situations now compared with a year ago showed the greatest decline—2.4 points from 96.1 to 93.7. It fell the most among respondents aged 60 and older, the bureau notes/

On the plus side, overall perceptions as to whether this is a good time to buy a major household item like an appliance increased 1.2 points from 104.6 to 105.8. Respondents aged 60 and older were the only demographic to experience a decrease in this indicator.

“Despite the overall increase in confidence and the opposing opinions between these two components, they indicate that opinions regarding the current economic conditions have worsened slightly among Floridians in May,” says Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

Expectations of personal financial situations a year from now declined 1.9 points from 107.6 to 105.7; however, expectations of U.S. economic conditions over the next year increased substantially by 11.3 points from 91.2 to 102.5, the greatest increase in this month’s reading. The latter is particularly strong compared with a month ago among those aged 60 and older, and those with income levels under $50,000, the bureau notes in the report. Expectations of U.S. economic conditions over the next five years increased 4.6 points from 90.5 to 95.1.

“Overall, Floridians are more optimistic, and the gain in May’s confidence came mainly from consumers’ future expectations about the national economy in the medium- and long-run,” Sandoval says. “Notably, these expectations are shared by all Floridians regardless of their age or socioeconomic status.”

The latest data for Florida continues to point to a very strong economy. In April, 178,400 more jobs were added statewide compared with a year ago, an increase of 2.1%. Professional and business services gained the most jobs, followed by construction, leisure and hospitality, and education and health services.

Earlier this month, the trade association Florida Realtors reported that the state’s housing sector registered more closed sales, higher median prices and more new listings from owners ready to enter the market.

Sales of single-family homes statewide totaled 24,804 in April, up 4.1% compared to April 2017. The statewide median sales price for single-family existing homes was $253,895, up 8.1% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in April was $190,000, up 10.5% over the year-ago figure.

April was the 76th month in a row that the statewide median sales price for both single-family homes and townhouse-condo properties rose year-over-year.

The University of Florida’s Sandoval believes that based on the latest economic data, consumer sentiment should remain high in the months to come.