Florida consumer confidence in the US economy fell 2.4 points from April to 93.3 points, according to a study released today by the University of Florida (UF).
“Most of the pessimism registered in May is due to perceptions of current economic conditions,” Héctor H. Sandoval, director of the Economic Analysis Program at the UF’s Economic and Business Research Office, said in a statement.
And the perception of the pace of personal finances compared to a year ago showed the “biggest fall”, sinking 5.9 points and go from 91 to 85.1.
As for the appropriateness of buying a larger home or appliances at the moment, confidence fell from 101.7 to 99.7, although there was a greater fall among people over 60 and those with incomes below 50,000 Dollars.
The school interviewed 415 Florida residents by telephone from May 1 to May 24.
The “Consumer Perceptions Index” also showed that personal expectations of one-year personal finances fell by 5.2 points, from 105.1 to 99.9, while the The economy in the country fell only one tenth, and in five years it reflected an increase of nine tenths (from 88.1 to 89).
“The reading on future economic conditions shows significant signs of deterioration in the last two months,” although, unlike April, “unfavorable expectations for this month are accompanied by a significant decrease in the perception of current conditions,” he said. Sandoval.
But the expert stressed the fact that Florida’s economy “continues to grow and labor market conditions continue to be generally favorable,” with a steady increase in jobs for six years.
However, Sandoval warned, “consumer sentiment seems to decline slowly,” after the strong rise last March, the “highest in fifteen years.”
If this pessimism continues in the coming months, “that could indicate a significant change in the trend of consumer perception,” he said.
The unemployment rate in Florida was 4.5% last April and, according to the US Bureau of Economic Analysis, the state’s gross domestic product grew at a rate of 3% in 2016.
This UF data was released the same day the Commerce Department said today that personal consumer spending in the United States grew 0.4 percent in April, the biggest gain in five months.
Thus, household consumption, which is considered the real engine of the US economy because it accounts for two-thirds of activity, shows a rebound after a weak start of the year.