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Letter to the editor

Consumer outlook worsens

A holiday pall settles on Florida and the U.S. as fears deepen.

By HELEN HUNTLEY, Personal Finance Editor
Published November 28, 2007

Consumers are feeling gloomy as the holiday shopping season gets under way. Surveys released Tuesday show consumers became more pessimistic about the economy last month, both in Florida and across the nation.

The Conference Board said its national Consumer Confidence Index hit its lowest level in two years last month, with a nearly eight-point drop from October.

"Consumers' apprehension about the short-term outlook is being fueled by volatility in financial markets, rising prices at the pump and the likelihood of larger home heating bills this winter," said Lynn Franco, director of the Conference Board's Consumer Research Center.

The Florida Consumer Confidence Index fell two points and reflected concerns at all income levels. "Overall we expect the holiday retail season to be weak compared to last year as consumers are cautious about spending too much," said Chris McCarty, director of survey research for the University of Florida Bureau of Economic and Business Research. "We expect growth in retail sales of no more than 3 percent and possibly much lower."

The UBS/Gallup Index of Investor Optimism also is at its lowest point in more than two years and is at less than half the level it was at the beginning of this year.

"People are hurting," said Madeira Beach investor Frank Macauley. "I'm hearing this from all parts of the country. Some are really hurting."

Helen Huntley can be reached at hhuntley@sptimes.com or (727) 893-8230.

[Last modified November 27, 2007, 22:50:52]