As the prices at gas stations grow higher, Florida's consumer confidence has plummeted to an all-time low.
The UF Survey Research Center in the Bureau of Economic and Business Research announced June 24 that the consumer confidence index dropped six points from its May value to 57 points, the lowest it has been in its 25-year existence.The index is benchmarked to 1966 with a value of 100 points. The value of the index is to compare it by month to month and year to year.
Chris McCarty, director of the UF research center, said the scale is already at levels typically associated with a recession.
McCarty said even when the United States was in a recession in 2001 and in the early 1990s, the index did not go this low. He said that a six-point drop reflects consumers pulling back on spending.
McCarty believes Florida's consumer confidence index will improve by the end of the year.
"It could go up a little bit in July, but if it goes much lower, then that's a really bad situation," he said.
The factors affecting the drop in consumer confidence are high gas prices and the uncertain housing market, McCarty said.
