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By Kerry Smith<\/div><\/div>\n

UF economist blames the omicron variant that \u201cundermined economic activity, pushed prices higher and inflation to its highest level in nearly four decades.\u201d<\/span><\/span><\/p>\n<\/div>\n

GAINESVILLE, Fla. \u2013 Consumer sentiment among Floridians dropped 2.3 points in January to 70.0 from December\u2019s revised figure of 72.3. It\u2019s now down 12.6 points from a year ago.<\/span><\/span><\/p>\n

\u201cThe decline in January is not unexpected considering the ongoing supply disruptions caused by the fast-spreading omicron variant that have undermined economic activity, pushed prices higher, and caused inflation to reach its highest level in nearly four decades,\u201d says Hector H. Sandoval, director of the Economic Analysis Program at UF\u2019s Bureau of Economic and Business Research.<\/span><\/span><\/p>\n

Current conditions<\/strong>: Among the five components that make up the index, four decreased and one increased \u2013 views of personal financial situations now compared with a year ago rose 1.2 points from 64.6 to 65.8. While views varied among demographic groups in the study, researchers say people over 60 years old had \u201cparticularly strong\u201d favorable opinions.<\/span><\/span><\/p>\n

Opinions on whether it\u2019s a good time to buy a major household item, such as an appliance, decreased 3.4 points from 61.2 to 57.8.<\/span><\/span><\/p>\n

Future expectations<\/strong>: All three components that gauge Floridians\u2019 expectations for the future declined in January. The index measuring expected personal finances one year from now dropped 4.1 points, from 87.4 to 83.3.<\/span><\/span><\/p>\n

When asked about broader U.S. economic conditions one year from now, that index dropped 4.2 points, from 73.5 to 69.3. <\/span><\/span><\/p>\n

Finally, outlooks for U.S. economic conditions over the next five years decreased 1.1 points from 75.0 to 73.9. However, people 60 or older and those with annual incomes greater than $50,000 had more positive views.<\/span><\/span><\/p>\n

\u201cThe decline in consumer confidence has been fueled by a growing pessimism in Floridians\u2019 expectations about their personal financial situation and national economic conditions over the next year,\u201d says Sandoval. \u201cBoth components are well below their pre-pandemic and post-pandemic averages.\u201d<\/span><\/span><\/p>\n

Sandoval says those drops are a \u201cworrying sign for the economy\u201d because they mean Floridians \u201canticipate reduced economic prospects for the year ahead.\u201d<\/span><\/span><\/p>\n

Still, Sandoval expects Floridians\u2019 attitudes to improve over the next few months as the latest surge in coronavirus cases fades along with the associated economic conditions, \u201calong with the Federal Reserve\u2019s decision to begin raising interest rates in the short-run to combat inflation.\u201d<\/span><\/span><\/p>\n

The UF study was conducted Dec. 1 through Jan. 27. The index is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.<\/span><\/span><\/p>\n

\u00a9 2022 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n

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\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"