Consumer sentiment sees another notable drop in September

It’s been a quarter year since consumer confidence has increased in Florida, according to the latest University of Florida survey.

Consumer sentiment in September fell 1.5 points to 78.7, down from the revised August figure of 80.2, according to a news release from the UF Bureau of Economic and Business Research. It’s the third straight month that consumer sentiment has declined in the Sunshine State.

“This month’s decline is driven primarily by reduced spending intentions and growing concerns about the national economy. While the steepest drop was in Floridians’ willingness to purchase big-ticket items, long-term expectations for the U.S. economy also fell, reaching their lowest level in 18 months,” said Hector H. Sandoval, Director of the Economic Analysis Program at UF.

“At that time, concerns focused on unexpectedly high inflation. Today, similar worries may be resurfacing, but they are now accompanied by signs of labor market weakness. This shift has prompted the Fed to respond with its first rate cut since December.”

The monthly survey conducted by UF researchers analyzes the economic perceptions of Floridians. Many of them said they are entirely uncertain about buying big-ticket home appliances such as refrigerators or furniture. That sentiment produced a sharp decline, falling 4.4 points in one month from 74.9 in August to 70.5 in September.

Florida consumers in September also said they are more pessimistic about their own personal financial situations compared to a year ago. That metric dropped from 71.7 in August to 71.3 in September.

Individuals’ feelings about their personal financial situations a year from now remained stable. That figure held at 87 points from August to September.

Sandoval said the current economic outlook among Florida consumers may appear to be bleak for the moment, but he noted that it’s still above levels coming out of the COVID pandemic.

“Consumer sentiment remains well above the lowest levels observed in 2022, when persistent inflation weighed heavily on Floridians. Still, the current outlook is shaped by a cooling labor market, inflation that remains above target and ongoing policy uncertainty related to tariffs and the Fed’s next moves. Looking ahead, these factors may continue to weigh on sentiment, and we could see further declines in the months to come,” Sandoval said.

The latest UF consumer sentiment survey was conducted between Aug. 1 and Sept. 25. Researchers administered questionnaires to 809 people either online or on cellphones.