The data is strong but confidence is fragile as the economy — or at least how voters feel about it — is at its familiar place as the most important issue as an election year gets underway.
The post-pandemic recovery has been incredibly kind to Florida’s economic statistics. The state’s gross domestic product, measuring Florida’s economic output, grew by a 6.1% annual rate in the third quarter, easily out-pacing the national GDP growing at 4.9%. While Florida’s economy is a fraction of the nation’s, it has grown at a faster rate for almost three years straight.
Still, Florida’s 6.1% growth rate was not the fastest among large states. Texas’ 7.1% GDP change was tops.
And, even while the Sunshine State’s overall economic output is very strong, personal income growth merely matched the national figure of 3.5%. Personal income measures salaries, wages, dividends and rental income. It is a broad measurement of how much money a person earns as income. While keeping pace with the national growth, it has slowed in Florida over the past several quarters, adding to the affordability challenges (more on that below).
Historically Low Unemployment
The single most important gauge of economic health is employment. And by that measure, South Florida is booming. Employers added more than 44,000 jobs over the past year and the unemployment rate is close to 2%. That is a ridiculously low number. And it’s been below 2% in Miami-Dade County since July.
READ MORE: How South Florida is a study in economic contrasts for the Biden administration
Stubborn High Inflation
But inflation. Inflation has been stubbornly high here. While it has come down from its pandemic high, South Florida still has the highest overall inflation rate in the nation. In October, consumer inflation measured 7.4% – over twice the national level. Even stripping out food and energy prices, inflation still is uncomfortably high.
Hot Housing Prices
Inflation has remained…
