Nov. confidence holds high

Consumer confidence in Florida fell slightly in the month of November, but not enough to erase the significant hike from October. Confidence is now slightly higher than it was a year ago, according to an index issued by the University of Florida, up from 69 in Nov. 2009 to 72 today.

Still, research director Chris McCarty says the long-term outlook for Florida's economy has not changed: businesses will have to make permanent changes given lower demand.

“In the long run, businesses will have to figure out how to become profitable without depending as much on consumer demand,” McCarty said. “Many businesses have already done so by trimming expenses, largely in the form of labor, and increasing exports.”

McCarty mentions several indicators that show things may be improving, but only by small amounts. Florida tourism has “picked up” after taking a first quarter hit, his report said, and retail sales may provide businesses some short-term relief.

But persistent unemployment, particularly in construction, is not going away quickly.

Confidence is rising slowly, but still hovers near all-time low levels. Prior to the recent recession, the index's lowest ever mark was a 64, just six points below today's level.