Consumer sentiment in Florida rose in July, marking the second consecutive monthly increase and contrasting with a national decline.

Consumer sentiment among Floridians rose for the second straight month in July, reaching 74.4 points, according to the latest report from the University of Florida’s Bureau of Economic and Business Research.

The figure is a 1.2-point increase from June’s revised figure of 73.2. Meanwhile, national consumer sentiment declined for the fourth month in a row, dropping by 1.8 points. Hector Sandoval, director of the Economic Analysis Program at the bureau, said Florida’s consumer sentiment has improved significantly in recent months.

“It appears that consumer sentiment in Florida has gained traction over the last couple of months,” he said. “Notably, future economic expectations are at their highest levels since summer 2021, reflecting positive economic prospects among Floridians. Moreover, as inflation recedes, it is likely that the Fed will begin cutting interest rates later this year, which could further enhance economic conditions,” said Hector Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.”

The report indicated that all five components of the index increased in July. Floridians’ views on their current economic conditions improved and opinions on personal financial situations compared to a year ago rose by 1.8 points, from 58.6 to 60.4, the largest increase among the components. Views on whether it is a good time to buy major household items, like refrigerators or furniture, edged up by 0.5 points, from 62.1 to 62.6. However, individuals earning less than $50,000 annually and those aged 60 and older reported less optimistic views.

Expectations about future economic conditions were also positive. Floridians’ expectations of their personal finances a year from now increased by 1.4 points, from 87.4 to 88.8. Expectations for U.S. economic conditions over the next year rose by 1.6 points, from 75.2 to 76.8, and for the next five years by 1 point, from 82.6 to 83.6. Views on the national economy varied, with women and those earning more than $50,000 expressing less favorable expectations.

Sandoval further noted that the growing optimism among Floridians aligns with current economic trends Inflation appears to be decreasing, with the Consumer Price Index falling to 3 percent and the Personal Consumption Expenditure Price Index, the Fed’s preferred measure of inflation, dropping to 2.5 percent in June.

“Looking ahead, given the current economic outlook, we expect consumer sentiment to continue improving gradually over the coming months,” Sandoval said.

Economic growth accelerated in the second quarter, driven by increased consumer spending, with an annual growth rate of 2.8 percent. Despite signs of a cooling labor market, unemployment remains low by historical standards.

Sandoval expects consumer sentiment to continue improving gradually over the coming months.

The study, conducted from June 1 to July 25, included responses from 502 individuals, with 229 reached by cellphone and 273 through an online panel. The index is benchmarked to 1966, with a value of 100 representing the same level of confidence as that year. The index ranges from a low of 2 to a high of 150.