The latest snapshot of how Floridians are ‘feeling’ showed a big jump in consumer confidence. The June report conducted by the University of Florida shows the state’s consumers apparently have a good view of the future. U-F Survey Director Chris McCarty says he’s not sure what to think about the survey because he expected consumer confidence to remain the same or even drop.
“So it might be that people think the stock market is due to make some increases or the Federal Reserve is going to stop raising interest rates and that’s going to lead to some increases in the stock market. People may feel that gasoline prices are, although high, leveling off and so that maybe making them feel somewhat better.”
Looking ahead, McCarty expects the monthly report to decline. He cites uncertainty in the stock market and continued sluggishness in the real estate market and the use of risky home loans.
Florida consumers apparently have a good view of the future. That’s the finding of the latest University of Florida monthly snapshot that measures the consumer confidence of the state’s residents. U-F Survey Director Chris McCarty says the stock market has dipped this month, gas prices remain high and interest rates are still going up – and he’s not sure why Floridians remain so positive. McCarty says the slowing of the state’s real estate market will drag down consumer confidence for the next six months.
“You can’t overstate the extent to which consumers used the equity in their homes following the 2001 recession in order to fuel purchases. The rising interest rates have pretty much put an end to that. They’ve also increased the inventory of homes.”
Thursday, 29 June 2006 01:00