Florida consumer sentiment edged higher in September for the first time this year, ending a six-month streak of declines even as Floridians reported worsening views of their current financial conditions.
The University of Florida’s consumer sentiment index rose three-tenths of a point to 67.7 in September from a revised 67.4 in August, according to data released Tuesday by UF’s Bureau of Economic and Business Research. National consumer sentiment declined during the month.
The increase was driven by improved expectations about future economic conditions, while measures of current financial conditions moved lower.
Floridians’ assessments of their personal finances compared with a year ago fell 1.8 points, from 62.8 to 61. Views on whether it is a good time to purchase major household items, such as appliances or furniture, declined nine-tenths of a point to 58.6.
By contrast, expectations for personal financial conditions one year from now increased 2.4 points, from 79.9 to 82.3. Expectations for U.S. economic conditions over the next year rose from 65.4 to 65.9, while expectations for conditions over the next five years increased from 69.6 to 70.5.
Hector H. Sandoval, director of UF’s Economic Analysis Program, said the September increase effectively left sentiment little changed from August, with optimism about future conditions offsetting weaker assessments of the present economy.
Sandoval said elevated inflation and rising energy prices continue to pressure household budgets, although Florida’s declining unemployment rate has provided some support.
He also cautioned that several economic developments during the second half of September may not yet be fully reflected in the latest reading. The Federal Reserve raised interest rates in mid-September, while the 10-year Treasury yield climbed above 5% and mortgage rates moved above 7%. Diesel prices also reached a record high in Florida during the second half of the month.
UF said persistently high gasoline, diesel and transportation costs could place additional pressure on consumers and contribute to broader price increases.
The survey was conducted from Aug. 1 through Sept. 24 and included responses from 733 people reached by cellphone. Results were weighted by county, age and sex to reflect Florida’s population.