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Consumer confidence among Floridians dropped for the third straight month in May, according to a University of Florida (UF) research survey.
UF’s Bureau of Economic and Business Research consumer sentiment report found consumers still skittish about the economy, with consumer sentiment dropping from a revised 74.1 in April to 72.7 in May.
“The decline in consumer sentiment comes as little surprise given that inflation accelerated during the month, eroding purchasing power and placing renewed pressure on household budgets,” UF Director of the Economic Analysis Program Hector H. Sandoval said.
“While labor market conditions nationwide remained relatively resilient, Florida’s labor market softened further, with the unemployment rate rising to 4.8% in April and continuing to diverge from the national rate (of 4.3%).”
Many of the components that make up the consumer sentiment report were consistently dour among Floridians. Views of personal financial situations compared to a year ago saw a steep drop, falling three points from 69.7 to 66.7. Consumers are also hesitant about buying big-ticket household items such as appliances and furniture, slipping from 62.7 to 62.3.
Outlooks about future financial fortunes weren’t any better, with a 2.3 point drop from 87.4 to 85.1. The forecast for U.S. economic conditions over the next 12 moths also slipped from 73.8 in April to 72.6 in May.
“Consumer sentiment in Florida has been trending downward over the past three months, reflecting growing pessimism about future economic conditions and spending intentions. This decline in consumer confidence could slow Florida’s economic growth, as a pullback in discretionary spending may dampen economic activity in the months ahead,” Sandoval said.
He acknowledged the war with Iran and skyrocketing energy costs is largely contributing to the bleak economic outlook among the state’s consumers.
“While the near-term outlook remains uncertain, inflationary pressures, particularly those stemming from volatile energy markets, remain an important source of risk. If higher energy costs continue to pass through to transportation, production, and other business inputs, inflation could remain elevated for longer than anticipated,” Sandoval said.
UF researchers polled 326 residents across Florida between April 1 to May 28 by cell phone. There was a cross section of demographics asked about their perspectives on the economy.
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