South Florida Sun-Sentinel.com
Staff and wire reports
August 29, 2007
Consumer confidence nationally and in Florida weakened in August as Americans
focused on turbulent financial markets, a decline in home prices and tighter
credit standards.
Results from a Florida Consumer Attitude Survey, released Tuesday, painted
a picture of a pessimistic consumer. The state’s consumer confidence index
suffered a three-point drop to 78, the lowest level recorded since July 2006’s
index of 77.
The New York-based Conference Board said Tuesday its Consumer Confidence Index,
declined to 105.0 from a revised reading of 111.9 in July, which was still
a six-year high.
Although the index was down, it was slightly stronger than the 104.5 that
Wall Street analysts expected.
"A softening in business conditions and labor market conditions has curbed
consumers’ confidence this month," said Lynn Franco, director of The Conference
Board Consumer Research Center. "In addition, the volatility in financial
markets and continued subprime housing woes may have played a role in dampening
consumers’ spirits."
In the Florida survey, the five components that make up the state index each
reported declines. For example, consumer perceptions about whether it is a
good time to buy big-ticket consumer items like autos, fell six points to 85.
Perceptions about the U.S. economy over the next year fell to 70 and perceptions
of U.S. economic conditions over the next five years fell to 77, both two-point
declines.
South Florida’s
housing market has been unraveling since 2006 but deterioration became pronounced
in 2007, said Chris McCarty, director of the Survey Research Center at the
University of Florida’s Bureau of Economic and Business Research, which conducts
the monthly survey.
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here:
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