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FLORIDA - According to new data from the University of Florida’s Bureau of Economic and Business Research, consumer confidence in Florida dropped significantly in March, marking the second consecutive month of decline.
The state's consumer sentiment index fell by 6.6 points to 78.1, down from 84.7 in February, closely reflecting a 7.7-point drop in national sentiment.
The study shows that pessimism is growing across all demographics, particularly among Floridians earning over $50,000 a year.
The drop is attributed to a mix of economic pressures, including high inflation, uncertainty surrounding interest rates, stock market fluctuations impacting retirement savings, and recent government layoffs.
Héctor H. Sandoval, director of the Economic Analysis Program at UF, explained that although the decline wasn’t entirely unexpected, it highlights rising concerns about future economic conditions.
The largest decrease was seen in willingness to purchase major household items, such as appliances, which fell 9.6 points to 68.3.
Other components of the index also declined.
Confidence in personal finances a year from now dropped by 7.1 points, while expectations for the U.S. economy over the next year and five years declined by 7.9 and 7.7 points, respectively.
The survey included 526 respondents and was conducted between February 1 and March 27.
The sentiment index is benchmarked to 1966 levels, where a score of 100 reflects equivalent confidence.
Looking ahead, Sandoval predicts continued caution among Florida consumers, especially regarding large purchases and discretionary spending, which could impact key sectors such as retail and hospitality.