Floridians’ views about the economy are on a decline, according to the state’s consumer sentiment index.
Residents of the Sunshine State had an altogether pessimistic outlook, with their expectations of their future personal financial situations dropping 3.9 points from February 2024 to February 2025.
Why It Matters
Inflation has caused Americans, especially in Florida, to face increasing costs on housing, home and car insurance, rent and transportation.
The state is also experiencing a cost-of-living transition. Thousands of people moved to Florida during the COVID-19 pandemic in search of warmer weather and lower costs compared to the Northeast and parts of the West Coast, which ultimately pushed prices up.
Home prices also rose in Florida due to increased demand and relatively low inventory rates.
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What To Know
Floridians rated their expectations on their future personal financial situations 3.9 points lower from February 2024 to February 2025, according to the state’s consumer sentiment index as calculated by the University of Florida.
The grim outlook was also reflected across different socioeconomic demographics. The only income group with a slightly more optimistic view of the economy from last year were residents with an annual income under $50,000.
From January into February, consumer sentiment among Floridians dropped 2.6 points, potentially reflecting fears about President Donald Trump‘s new administration and imposed tariffs on Canada, Mexico and China.
“Several factors are contributing to this growing pessimism, with the potential impact of tariffs likely at the top of the list, particularly through their effect on prices,” Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research, said in the report.
“This has led to higher inflation expectations. While tariffs on Canada and Mexico were postponed in February, they are now expected to take effect in March. Tariffs on China were imposed in February, and further increases are under consideration. Additionally, inflation remains above the Fed’s target, delaying any prospects of interest rate cuts in the near future.”
Layoff concerns could also contribute to the drop in economic confidence, with Sandoval saying federal worker labor reductions are likely to impact Florida businesses.
The index was based on the responses of nearly 600 Florida residents from January 1 to February 27.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “When we discuss Florida, we’re talking about an economically diverse state that does have a large number of wealthier transplants from other states, as well as a strong population of retirees. The similarity with both of these groups is usually a strong financial connection to the stock market, either through individual stock purchases, mutual funds, or—most common—401(k)s and other retirement vehicles.
“Now that the market is giving back most of the gains from the election’s immediate aftermath and prices haven’t seen much progress in dropping lower, it’s no surprise a good portion of Florida’s residents are starting to take a more pessimistic view of the economic outlook for the coming months.”
What Happens Next
Trump’s 25 percent tariff on all imports from Mexico and Canada is delayed until April. But at that point, consumers could face more economic turbulence and see the everyday prices of groceries, housing and technology all surge.
Florida, which is experiencing a changing cost of living due to an influx of residents, could feel the economic hit a bit more closely as many struggle to afford basic necessities and housing.
