Florida consumers felt a bit better as 2025 ended, report says

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(The Center Square) - Is it a good time to make a big purchase? Will the economy improve in the next year?

Floridians were feeling a bit more optimistic about the answers to those questions as 2025 ended, according to a new report. The Florida Consumer Sentiment Index by the University of Florida rose 2.4 points in December, higher than the national sentiment's 1.9-point increase. 

The numbers capped a year in which the overall mood on the subject worsened in Florida. Consumer sentiment was 12 points higher at the beginning of 2025 than at the end of it. 

Economic factors that likely dampened confidence include reductions in the federal workforce, the longest government shutdown in American history and policy changes from the Trump administration that brought uncertainty, according to Hector H. Sandoval, director of the University of Florida’s Economic Analysis Program.

“As the new year begins, while consumer sentiment declined across sociodemographic groups and across all five components of the index over the course of 2025, the economy enters 2026 with economic agents potentially becoming more accustomed to recent policy changes,” Sandoval said. “As policies begin to settle, uncertainty may ease, which could lead to smaller swings in consumer sentiment over the year ahead.”

Expectations for the U.S. economy over the next year rose almost four points, one of the largest increases observed.

Floridians were also feeling more confident about their personal finances, though that opinion was more common among men and people with an annual income over $50,000. Women, people younger than 60 and those with an annual income below $50,000 were more likely to have less favorable views about their personal finances, the report found.

“Several challenges remain,” Sandoval said. “Looking ahead, it will be important to continue monitoring inflation, which remains above the Fed’s 2 percent target, as well as labor market conditions, as both will influence the Fed’s future policy decisions.”