Florida’s consumer sentiment declined in February, reversing three months of gains following the presidential election, according to a report released by the University of Florida’s Bureau of Economic and Business Research.

The index dropped 2.6 points to 84.3, while national sentiment saw a steeper decline of seven points.

The downturn was driven largely by weakening expectations for future economic conditions, particularly regarding the national economy. Short-term outlooks for the U.S. economy recorded the sharpest decline among index components, falling 8.6 points to 87.9, nearly erasing gains made since November. Long-term expectations also deteriorated, with sentiment regarding economic conditions over the next five years dropping 5.8 points to 89.3.

Hector H. Sandoval, director of the Economic Analysis Program at the Bureau of Economic and Business Research, attributed the decline in part to concerns over tariffs and inflation.

“Several factors are contributing to this growing pessimism, with the potential impact of tariffs likely at the top of the list, particularly through their effect on prices. This has led to higher inflation expectations.,” he said. “Additionally, inflation remains above the Fed’s target, delaying any prospects of interest rate cuts in the near future.”

Among the five components of the index, four declined while one improved. Floridians’ assessment of their personal financial situation compared with a year ago rose 5.5 points to 68.1, with broad gains across demographic groups, particularly among men and those aged 60 and older. In contrast, sentiment regarding the purchase of major household items edged down 0.3 points to 77.6, with mixed opinions depending on income and age.

Expectations for personal financial conditions over the next year fell 3.9 points to 98.3, reflecting broad-based pessimism with the exception of respondents earning less than $50,000 annually, who expressed slightly more optimism.

The report also cited potential economic ramifications from recent federal government layoffs. Florida is home to nearly 100,000 federal civilian employees, though the extent of job losses remains unclear. While the broader job market remains stable, reductions in government employment and wages could weigh on consumer spending and business activity.

The survey, conducted from Jan. 1 to Feb. 27, gathered responses from 550 individuals through cellphone interviews and an online panel. The index, benchmarked to 1966, ranges from a low of two to a high of 150, with 100 representing the confidence level of that year.

Sandoval said consumer sentiment in March will provide a clearer indication of whether the decline reflects a temporary fluctuation or a sustained downward trend.