October produced another slide in the economic outlook among Floridians as a University of Florida survey shows a drop in consumer sentiment for the fourth month in a row.
Sunshine State residents can’t seem to shake the slump in consumer confidence, as UF analysis measured consumer sentiment at 78.3 last month. That’s down from September’s revised reading of 79.3. The state falls in line with the national consumer sentiment figure, which dropped by 1.5 points in October.
“Consumer confidence among Floridians continues to decline, largely due to more pessimistic views about their personal finances and the national economic outlook,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
“Expectations about the country’s economy have weakened notably, views of the national economy over the next year have fallen for three straight months, while long-term expectations have declined for four. In fact, these two components have seen the steepest declines since January, signaling that Floridians are increasingly cautious about the national economic outlook.”
Four out of five major components of the survey took a dive in October among Florida consumers. The views on personal financial situations dropped from 71.6 in September to 70.9. Floridians are also hesitant to buy a major household appliance as that rating slipped from 71.3 in September to 69.7 in October. Expectations about the broader U.S. economic conditions and long-term expectations about the national economic picture both dropped as well.
The one area that showed an uptick in sentiment was expectations about personal financial situations a year from now which went from 87.8 in September to 88.8 in October.
“Looking ahead, several factors are likely to continue shaping consumer sentiment. While the Fed cut rates again in October, Chair Jerome Powell has signaled caution about further reductions in December,” Sandoval said.
“Trade tensions remain a source of uncertainty, although U.S.-China relations showed tentative improvement, ties with Canada worsened. Additionally, the ongoing government shutdown, which lasted through all of October, has added to the economic uncertainty. If the closure extends further into November, becoming the longest shutdown on record, it may deepen consumer pessimism. Overall, we expect sentiment to remain subdued through the end of the year.”
The UF survey was conducted between Sept. 1 and Oct. 30. Researchers tapped 826 Floridians with questionnaires on mobile phones and internet online panels.
