Florida consumer sentiment increased for the second consecutive month in October, according to a University of Florida report released Tuesday, although residents continued to report deteriorating personal finances and weaker intentions to make major purchases.
The University of Florida’s Bureau of Economic and Business Research reported that its consumer sentiment index rose 0.7 points to 69.1 in October, up from a revised September reading of 68.4. The improvement contrasted with a slight decline in national consumer sentiment.
Three of the index’s five components increased, led by expectations for U.S. economic conditions over the next five years, which climbed 2.7 points to 73.8. Expectations for the national economy over the next year rose 1.1 points to 68, while expectations for personal finances one year ahead edged up 0.2 points to 83.3.
However, assessments of current economic conditions continued to weaken. Floridians’ views of their personal finances compared with a year earlier declined for the seventh consecutive month, falling to 61.8. The index measuring whether consumers consider it a good time to purchase major household items also decreased, reaching 58.5.
“Floridians’ expectations about future economic conditions improved again in October, particularly their views about the national economy over the next five years,” said Hector Sandoval, director of UF’s Economic Analysis Program. “However, this improvement contrasts with their increasingly pessimistic assessments of current conditions.”
The report attributed continued household financial pressures to persistent inflation, rising energy costs and elevated borrowing costs, despite broader economic growth.
Consumers ages 60 and older and those earning more than $50,000 annually reported improved assessments of current conditions, while lower-income respondents expressed weaker expectations in several categories.
Sandoval cautioned that declining spending intentions could be particularly consequential ahead of the holiday shopping season.
The survey included 970 Florida residents contacted by cellphone between September 1 and October 29.
