Florida consumer sentiment declined for the fourth consecutive month in June, falling to its lowest level in two years even as national consumer sentiment improved, according to a new University of Florida survey.
The Florida Consumer Sentiment Index dropped 1.8 points to 71.1 in June, down from a revised 72.9 in May, the University of Florida’s Bureau of Economic and Business Research reported Tuesday. The index has now fallen 8 points over the past four months.
Hector Sandoval, director of UF’s Economic Analysis Program, said the decline reflects broad pessimism among Florida households, driven in part by renewed inflation pressures and higher costs for everyday expenses such as gasoline.
“This widespread pessimism coincides with the reemergence of inflation, which continues to strain household budgets,” Sandoval said.
Four of the five components that make up the index declined in June. Floridians’ views of their current personal finances fell from 66.9 to 64.8, while expectations for their personal finances a year from now dropped from 85.2 to 83.9.
The sharpest monthly decline came in expectations for U.S. economic conditions over the next year, which fell 3.6 points to 69.2. Expectations for the national economy over the next five years also declined, falling 2.5 points to 74.5.
The only component to improve was whether now is a good time to buy a major household item, which increased slightly from 62.4 to 63.
Sandoval said falling gas prices could help consumers, but Florida’s softer labor market and unemployment rate above the national average continue to weigh on household confidence.
The survey was conducted from May 1 through June 25 and included 394 Floridians reached by cellphone.
