S. Florida Economy Still Improving Slowly
MIAMI (CBS4) - South Florida's economy has been showing a slow, steady recovery in the first quarter. As the second quarter is set to begin, Wall Street's near a record high for the year and investments and retirement accounts are starting to show decent gains. Even South Florida's housing market has seen small signs of life this season.
But, while some problems in the economy are getting better; some old ones still remain.
"I'm in the construction industry and business has been down for me and a lot of other peoples; there's still a lot of people suffering," said Coral Gables Contractor Pepi Cancio.
And there's no positive news on the horizon for the construction industry.
The reason stems from forecasts for higher gas prices, which will in turn slow consumer spending, and eventually hold back demand for new housing and commercial units.
While private hiring is expected to continue to yield moderate gains, state and federal budget cuts may trigger a new wave of layoffs for government workers. That could keep the unemployment rate from improving much in the coming quarter.
While the area is expected to continue attracting foreign investment and tourism; don't be surprised to see cuts in domestic tourism as summer approaches.
And on the family financing front, rising consumer prices due to higher energy costs are likely to dominate personal finances.
"I think the most important thing is don't let rising energy costs catch you off guard," said Lane Jones of Evensky & Katz. "Look over your budget to start seeing what you need to do to adjust it so it doesn't catch you by surprise."
Plus, don't expect to see a lot of income growth. While the parent companies and executives will continue to rake in billions, the companies are not likely to send money down the line. Higher operating expenses will be the culprit behind keeping large raises from moving down the ranks.
So while it will be out with some of the old, there's not going to be a lot of in with the new on the South Florida economic front in the second quarter.
