Florida consumer confidence rises to highest level in more than two years

GAINESVILLE, Fla. — Florida’s consumer confidence unexpectedly rose in January by five points to 74, possibly a sign of post-holiday relief, according to a new University of Florida survey.

“The sharp rise was somewhat of a surprise,” said Chris McCarty, survey director of UF’s Bureau of Economic and Business Research. “In the past we have seen similar jumps in the January index, perhaps in response to the financial stress associated with the holidays and the economic turbulence of the past year.”

This month’s increase in consumer confidence was broad-based across age and income levels, pushing the index to its highest level in more than two years, McCarty said.

“On the positive side, the stock market seems to have held onto the big increase from 2009, and housing prices, though down at the end of the year, seem at least temporarily stable,” McCarty said. The extension of the tax rebate to existing homeowners should help support home prices, he said.

However, the stability of housing prices could be threatened by a continued rise in unemployment, McCarty said. The Florida Agency for Workforce Innovation released December unemployment figures on Friday, which show that the rate increased to 11.8 percent, up .3 percent from 11.5 percent for November, he said.

“We believe that once we have collected an extra week’s worth of data (for the end of the month), consumer confidence will edge downward,” McCarty said. “These data do not reflect the negative employment report that was released on Friday.”

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Florida consumer confidence rises to highest level in more than two years - University of Florida News - January 26, 2010

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