Good news about housing and stocks lifts Florida’s consumer confidence

GAINESVILLE, Fla. — Rising housing prices, stock market gains and the lack of any new setbacks in the national economy boosted Florida’s consumer confidence three points to 70 this month, according to a new University of Florida survey.

“We had anticipated an increase in consumer confidence in August based on what appeared to be an unjustifiable two-point drop in July following what was already a two-point decline the previous month,” said Chris McCarty, survey director of UF’s Bureau of Economic and Business Research. “While the economic environment is by no means bright, the decline in July seemed unsustainable given the lack of any very bad economic news and some encouraging signs in Florida’s housing market and the stock market.”

Three of the five components in the index rose, one fell and one stayed the same. Perceptions of personal finances now compared with a year ago remained unchanged at 43, still only four points above its all-time low of 39. Perceptions of U.S. economic conditions over the next year jumped 10 points to 73; perceptions of U.S. economic conditions over the next five years rose eight points to 80; and perceptions of personal finances a year from now increased five points to 84. The only component to drop was perceptions of whether it is a good time to buy big-ticket items, which fell five points to 72.

“We are not out of this recession yet, particularly here in Florida, but things are not nearly as bad as they were a year ago,” he said.

Home sales have picked up both nationally and in Florida, and falling prices suggest a bottoming out of the housing slump, McCarty said. The latest report from the Florida Association of Realtors shows median prices for existing single-family homes flat from last month and still up for the year, he said.

If foreclosures continue, they could depress home prices, McCarty said. The Mortgage Bankers Association has reported that 23 percent of Florida mortgages in the second quarter of 2009 were either in foreclosure or late on payments, he said.

Good news about housing and stocks lifts Florida’s consumer confidence - University of Florida News - August 25, 2009

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UF survey shows state's consumers growing confident - Herald-Tribune - August 27, 2009
Consumer confidence: Florida, national indications show economic gloom lifting - Sun Sentinel - August 26, 2009
Housing among encouraging signs in Florida consumer confidence - Tampa Bay Business Journal- August 25, 2009
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State Consumer Confidence Rebounds - GlobeSt.com - August 25, 2009
Consumer confidence improves in Fla., U.S. - Ocala Star Banner - August 25, 2009
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