Confidence approaches new low

Consumer confidence in Florida fell significantly in August, according to researchers at the University of Florida, and is now flirting with the prospect of an all-time low.

“The confidence index for August is now only three points above its record low of 59 from June of 2008,” explains Chris McCarty, director of the research efforts behind the university's survey.

His interpretation of the survey's most recent results is no more encouraging. “If past history of this index is any indication we are in, or at least very near, a recession,” he says.

The university's overall confidence index for August was a 62, down five points from July. According to the survey data, the drop was perpetuated by two subsets of respondents: women and seniors.

Consumer confidence fell eight points among women, from 67 in July to 59 in August, while for men, the index fell just one point, to 65. And for survey respondents aged 60 and older, confidence fell nine points, from 66 to 57, while all other respondents showed just a two-point drop, from 69 to 67.

Although the results for August are indeed discouraging, McCarty does not expect to see further declines in future surveys. “While we are near record lows, as is the rest of the country, the economic circumstances are not anything like they were in 2008,” he says. “At a certain point it becomes difficult for the index to go much lower.”