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Consumer Confidence Up, For Now

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By TED JACKOVICS

tjackovics@tampatrib.com

Published: December 30, 2008

TAMPA - Despite unprecedented pessimism about personal finances, consumer confidence among Floridians rose in December, reflecting optimism about new presidential leadership, a University of Florida study found.

The recession is likely to last well into 2009, however, and consumer confidence will decline in the first quarter of 2009 with the lack of immediate relief, a UF researcher said.

"Consumers are looking forward to a shift on the economy toward something better in 2009," said Chris McCarty, director of UF's Survey Research Center at the Bureau of Economic and Business Research.

"As with the past month, consumers are confident that the new administration will resolve the economic crisis and that much of the intervention so far will work," McCarty said.

The UF preliminary index for December rose 5 points to 67, as perceptions on four of the five index components improved:

•Whether this is a good time to buy big-ticket consumer items

•U.S. economic conditions over the next year

•Perceptions of U.S. economic conditions over the next five years

•Personal finances in a year

Compared with a year ago, however, perceptions of current personal finance dropped 1 index point to a new record low.

"Floridians are reporting the worst financial situation for themselves since we started the index in the mid-1980s," McCarty said.

Florida has lost more than 200,000 jobs in the past year, McCarty said, and it's unlikely the losses have peaked. The only bright spot for Floridians is the lower cost of energy and gasoline.

The UF report released last week was based on 427 responses.

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