Al's Second Quarter Forecast
South Floridas' economy has seen a steady, slow recovery for the first quarter with tourism and foreign trade seeing decent improvements.
As we enter the 2nd quarter, what can we expect and more importantly what can we do about it?
Wall Street's near a record high for the year. Our investments and retirement accounts should be seeing decent gains. South Florida's housing market is seeing it's huge inventory of distressed properties getting smaller by the month.
At the start of the 2nd quarter, some problems around town are getting better. But some old ones still remain.
Pepi Cancio, a Coral Gables Contractor, says "I'm in the construction industry and business has been down for me and a lot of ther people, there's still a lot of people suffering".
The local construction industry remains a key part of our economy.
But it is expected to continue seeing tough times.
What's the problem?
Forecasts for higher gas prices which will slow consumer spending and hold back demand for new housing and commercial units.
While private hiring is expected to continue to see moderate gains, budget cuts may trigger a new wave of layoffs for government workers.
Real Estate sales are improving, but prices may still be bottoming out.
We'll continue attracting foreign investment and foreign tourism.
But don't be surprised to see cuts in domestic tourism as we approach the slow summer.
For our family finances, the 2nd quarter will probably be dominated by rising consumer prices all based on rising energy costs.
Lane Jones of Coral Gables' Evensky & Katy warns " I think the most important thing is don't let rising energy costs catch you off guard. Look over your budget to start seeing what you need to do to adjust it so it doesn't catch you by surprise".
Another problem facing family finances?
We should expect limited income growth, as companies start trimming costs to make up for higher operating expenses.
Don't be surprised to see a slow down in consumer spending, with local businesses slashing prices to try and get customers back to the checkout counters.
Q-2 South Florida style will continue to see some old problems getting better.
But our stalled construction, employment and personal income will continue to be a problem for quite a while, with no "Quick and Easy Fixes" anywhere in sight.
