Florida’s Consumer Confidence – Continuing its Climb
Can Florida be illustrating to the rest of the country how economic
recovery is done? Running counter to the
potential effects of both the payroll tax holiday expiration as well as the
unfolding federal budget sequestration, Florida’s consumer confidence index (CCI)
rose to 79 in April – a four percent increase from March and an over eight percent
increase from a low of 73 in February, according to data supplied by the
University of Florida’s Bureau of Economic Research. While the national index fell two points (as
measured by the University of Michigan’s survey), Florida continues to display signs
of tail winds and is positioning to be an economic leader moving into the
second quarter of 2013.
As a leading economic indicator of projected business
activity in coming months, the CCI measures sentiments and opinions on a set of
consumer perceptions and is widely used
as a gauge of overall economic trends.
While national trends suggest that short-term consumer spending may
cool, Florida’s outlook continues to show signs of light. Of the five indicators used in the index,
four showed growth with one staying unchanged.
Most notably, the indicator for expected economic conditions
one year from now rose over 11 percent this month – from 72 in March to 80 in
April. Are Florida’s policies and focus
on strengthening job creation and improving the business climate effective? Apparently Florida consumers seem to think
so.
