All indications a go for continued optimism
Photo by Noelle Franzen from FreeImages
Consumer confidence among Floridians in April reached its highest level in 17 years, mirroring a similar national report. Floridians are more optimistic about the future, especially their personal financial situation. Also in the news this week is that Florida has more profitable vacation rental markets than any other state and that running an angel fund in Florida just got easier.
The Florida Consumer Sentiment Index report, published monthly by the University of Florida Bureau of Economic and Business Research (BEBR), increased 1.4 points in April to 102 from a revised figure of 100.6 in March. Four of the Index’s five categories saw increases. The largest increase was in expectation of personal financial situations a year from now – rising 3.2 points, from 106.8 to 110 – the highest level in this category since May 1999 when it reached 110 points. The only decline was in whether this is a good time to buy a big-ticket item – dropping 1.2 points.
Florida’s economic indicators remain strong. Unemployment remains unchanged at 3.5%, with almost 210,000 jobs added last year, up 2.4%. Personal income rose 5.2%, even better than the national 4.5% increase. The BEBR report comes on the heels of a report by The Conference Board showing U.S. consumer confidence rose 5 points in April.
“Looking ahead, given the economic outlook and the current levels of confidence, we anticipate consumer sentiment to remain high in Florida in the following months,” said Hector Sandoval, BEBR’s Economic Analysis Program Director.
Making money for some includes renting out their property. A new Rented.com survey shows Florida at the top in that category, with the most profitable vacation rental markets than any other state. The 2019 Rented Report of the 150 best places to buy a vacation rental property in the U.S. based on return on investment, shows Florida has six cities in the top 25. They are Panama City Beach (#3), Palm Coast (#5), Jacksonville (#12), Navarre (#15), Kissimmee (#19), and Cape San Blas (#20).
Part of business and personal success, although unpleasant, often first involves defeat. A new report shows that bankruptcies have risen for the sixth consecutive month in Florida’s middle district, which stretches from Jacksonville, south to Ocala and Orlando, and west to Tampa and all the coast south to Ft. Myers. There was a total of 2,532 bankruptcy petitions filed in March, up 37% from February and up 13% year-to-year in that month. Most (72%) were Chapter 7 liquidations. 2018 saw the first yearly increase in bankruptcies in the middle district since 2010, at the heart of the foreclosure crisis.
Last week we mentioned that an important factor for organic economic growth is the availability of venture capital, something Florida has struggled with. And while our state has its fair share of millionaires and billionaires, angel capital (money from wealthy folks simply trying to do good) has also lagged. The Miami Herald reports there’s a new startup company in Miami that hopes to make it easier for angel investors to invest, by automating the process required to manage a large angel investment. The paper notes there are 30 billionaires in South Florida alone.
LMA Newsletter of 5-6-19
