Consumer confidence in Florida edged up slightly in January, with the Florida Consumer Sentiment Index rising to 86.9 from 86.7 in December, according to a report released Tuesday by the University of Florida’s Bureau of Economic and Business Research.
The marginal increase was driven by improved perceptions of current financial conditions, particularly in spending intentions, while expectations for the future declined.
Floridians’ views of their personal financial situation compared to a year ago increased one point from 61.6 to 62.6. However, perceptions varied across demographics. Men saw an increase from 67.5 to 70.1, while women reported a slight decline from 56.3 to 55.4. Those under 60 expressed greater optimism, with sentiment rising from 65.8 to 68.0, while those 60 and older saw a drop from 53.6 to 49.4. Among income groups, individuals earning more than $50,000 reported an increase from 69.4 to 71.2, while those making less than $50,000 saw sentiment decline from 51.3 to 49.5.
Consumers displayed significantly greater confidence in making major household purchases, with the index component measuring whether now is a good time to buy a major item jumping 4.7 points from 73.3 to 78.0—its highest level in more than four years. This increase was led by men, whose sentiment on large purchases rose from 79.7 to 86.4, while women reported a smaller rise from 67.6 to 69.9. Younger consumers expressed the most optimism, with sentiment increasing from 71.4 to 79.8, while those 60 and older saw a slight decline from 78.6 to 75.4. Households earning more than $50,000 reported a significant increase from 75.2 to 82.7, whereas those making less than $50,000 saw a modest decrease from 72.6 to 71.6.
Despite improved assessments of current conditions, expectations for the future worsened. Floridians’ outlook on their personal financial situation a year from now dipped slightly from 102.6 to 102.3. Men’s expectations fell from 112.2 to 110.4, while women’s edged up from 94.0 to 94.4. Younger respondents saw a slight decline from 105.9 to 105.2, and those 60 and older reported a drop from 95.4 to 93.2. Higher-income households showed a modest increase from 107.4 to 107.7, while lower-income respondents saw a decline from 94.6 to 92.6.
“Floridians begin the year with improved views about current economic conditions but concerns about the future,” said Hector Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research. “The slight increase in consumer sentiment this month was driven by improved views of current conditions, particularly spending intentions. However, expectations for the future declined, reflecting concerns about potential challenges ahead.”
Floridians’ expectations for U.S. economic conditions over the next year registered the sharpest decline, falling 2.9 points from 99.4 to 96.5. Confidence among men decreased from 112.4 to 107.3, while women’s expectations dipped from 87.6 to 86.0. Younger respondents reported a decline from 101.2 to 99.0, while those 60 and older saw a steeper drop from 95.4 to 88.6. Lower-income households experienced the greatest decline, falling from 94.6 to 86.8, while higher-income respondents saw a slight increase from 102.4 to 102.7.
Longer-term expectations also fell, with sentiment regarding U.S. economic conditions over the next five years slipping 1.3 points from 96.5 to 95.2. Men’s expectations dropped from 109.6 to 106.8, while women’s declined from 84.6 to 83.8. Younger respondents showed a slight increase from 96.6 to 96.9, while those 60 and older reported a more substantial drop from 95.8 to 90.1. Confidence among those earning less than $50,000 declined from 91.2 to 88.2, while those making more than $50,000 saw a minor dip from 99.2 to 98.8.
“The rise in spending intentions may also reflect concerns and uncertainty over the trade policies announced, with consumers potentially anticipating higher prices due to tariff hikes and ongoing inflation,” Sandoval said. “In other words, while consumers are spending more, they may be acting before prices rise further, suggesting cautious optimism about current conditions.”
The survey, conducted from Dec. 1 to Jan. 30, included responses from 578 Floridians. The index, benchmarked to 1966 levels where a value of 100 represents that year’s consumer confidence, reached its highest mark since October 2021. Meanwhile, national consumer sentiment fell by nearly three points, marking its first decline in six months.
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