FAR - News & Events - Floridians’ consumer confidence declines slightly in January

FAR - News & Events - Floridians’ consumer confidence declines slightly in January: "Floridians’ consumer confidence declines slightly in January

GAINESVILLE, Fla. – Jan. 31, 2007 – The sluggish housing market, and not gas prices or the stock market, is likely to blame for the drop in consumer confidence in Florida by one point to 89 in January, according to University of Florida economists.

“For more than a year consumer confidence has moved in the direction of gas prices, rising when gas prices fall and falling when gas prices rise,” said Chris McCarty, director of the survey research center at UF’s Bureau of Economic and Business Research. “This month gas prices declined, but consumer confidence declined as well.”

The stock market had been another key influence, but although the stock market fell in January, it was a small decline that would not normally result in lower confidence, he said.

“Because most of the decline was in perceptions of personal finances, then something else must be responsible,” McCarty said. “This something else is very possibly the difficulties associated with a downturn in housing.”"