Consumer sentiment in Florida fell sharply in March, declining 6.6 points to 78.1, according to the University of Florida’s Bureau of Economic and Business Research, marking the largest single-month decline in the index since 2020, when confidence levels plunged amid the onset of the COVID-19 pandemic.

The decline, reported April 1, mirrors a similar decrease at the national level, where consumer sentiment fell 7.7 points. In Florida, the downturn was recorded across all five components of the index and among all demographic groups, with the most significant reductions observed among residents with annual incomes above $50,000.

“This pessimism stems from reduced spending intentions and concerns about future economic conditions. The last time consumer confidence dropped by more than six points was in 2020, when economic conditions worsened as the pandemic took hold,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

The sharpest component-level drop was in Floridians’ views on whether now is a good time to buy a major household item, such as an appliance. That figure fell 9.6 points from 77.9 in February to 68.3 in March. Expectations for personal financial situations one year from now declined 7.1 points to 91.3. Views of U.S. economic conditions over the next year decreased 7.9 points to 80.6, while expectations for national economic conditions over the next five years dropped 7.7 points to 82.4.

Assessments of current personal finances compared with a year ago fell slightly, down 0.9 points to 67.8. That component saw modest improvement among women and people aged 60 and older, the only subgroups to report positive movement in any portion of the index.

Overall sentiment among men declined from 94.9 in February to 88.1 in March, while women’s sentiment fell from 74.7 to 69.2. Among respondents under age 60, the index decreased from 88.8 to 82.5. For those aged 60 and older, it dropped from 74.6 to 70.4.

The index fell across all income levels. Among respondents with household incomes below $50,000, sentiment decreased from 76.0 to 71.2. For those with incomes above $50,000, it dropped from 89.9 to 82.5.

“While changes in spending intentions don’t necessarily translate into changes in actual spending, a significant decline suggests Floridians may be shifting toward more cautious economic behavior and could postpone discretionary spending, particularly on big-ticket items. This could slow economic activity, especially in retail and hospitality sectors,” added Sandoval.