Consumer confidence up in Florida, but likely to be temporary
Floridians’ confidence in the economy and their own finances rose in February, one month after hitting a 16-year low. But the surge is likely to be temporary, University of Florida researchers said today.
UF’s Bureau of Economic Research identified two likely reasons behind the confidence boost: Congress’ passage of a federal stimulus package that will lead to billions in one-time tax rebates, and Florida voters’ recent approval of a property-tax relief amendment.
Chris McCarty, who directs the bureau’s survey research center, said in a news release that he expects confidence to decline again in March. The effects of the stimulus package and property tax relief will likely be short-lived, he said. Moreover, the Federal Reserve Board’s reduction in short-term interest rates, while perhaps emboldening lenders to make more loans, has "further weakened the dollar against other currencies." That, McCarty said, has boosted the price of gas and other imports.
Nationwide, consumer confidence continued declining in February. The Conference Board reported today that the U.S. index hit a 15-year-low, excluding a period during the Iraq war in 2003.
- Scott Barancik, Times staff writer