Florida’s consumer confidence fell three points in June to 68. The index components were mixed, however, with perceptions of personal finances now compared with a year ago up three points from a revised May reading. All other components of the index were lower than or the same as last month. Perceptions of personal finances a year from now fell six points to 84, and perceptions of U.S. economic conditions over the next year fell seven points to 65. Perceptions as to whether it is a good time to buy big-ticket items fell nine points to 67. Finally, perceptions of U.S. economic conditions over the next five years remained unchanged at 80.
“In the previous two releases we had suggested the possibility of a small decline in confidence in June, which seems to have been the case,” says Chris McCarty, director of UF’s Survey Research Center at the Bureau of Economic and Business Research. “This is most likely a combination of the fallout from the Florida state budget, which includes several new and increased fees, as well as the bankruptcy of GM.” Another factor affecting the decline is the increase in Florida’s unemployment rate. A previous unemployment release from the Agency for Workforce Innovation showed a slight decline, but that has since been erased by an increase into double-digit unemployment. Florida’s seasonally adjusted unemployment rate for May 2009 was 10.2 percent. The economic landscape in Florida remains mixed.
On the positive side, the Florida Association of Realtors® May report again showed signs that the median price of existing homes is stabilizing. Since January, the median price has fluctuated in a narrow range and is now up for the year at $144,400. It is increasingly likely that Florida has taken most of its knocks to housing value, even as other states continue to decline. On the negative side is high unemployment and continued foreclosures, although the rate of foreclosures in Florida may already have peaked.
