The St Petersburg Times reports on the consumer survey. "Floridians' confidence in the economy plunged this month to its lowest level in 13 years, University of Florida economists said Tuesday. The chill in the housing market, higher interest rates and fuel prices appear to be taking their toll. National confidence numbers also fell in August, but not as much as they did in Florida."

"The Florida Consumer Confidence Index fell 11 points to 76, while the national index went from 107 to 99.6."

"Chris McCarty, director of survey research at the University of Florida thinks the changed outlook for housing is at least partly responsible. 'Florida is in a position to really be affected by a decline in housing,' McCarty said."

"'There are a lot of overvalued markets in Florida, and there are a lot of risky loans, some of which are going to readjust right about now,' he said. 'Also, a lot of employment increases over the last few years have been related to housing.' When projects get canceled or put on hold, that has a direct impact on jobs and a secondary impact on sales of appliances and furniture, he said."

"'The feedback I get from people when they cancel their appointments at the last minute is that they're broke,' said (hairstylist) Valerie Bohr in Largo. 'Just this week I had two people tell me they got electric bills over $400. People can't afford to come in and get their hair done if they're working to pay an electric bill like that.'"

"The Florida survey showed the biggest drop in confidence was among working-age people. They feel a pinch from rising interest rates on credit cards and home-equity loans. 'We've got an adjustable-rate home-equity loan, and every time the prime rate goes up, our payment goes up,' said Mike Della Penna, a flooring contractor in Land O'Lakes. He said he and his wife continue to pay more than required because they've set a target for paying off the debt."

"'But there may be a squeeze on some people whose incomes are marginal,' he said."

"Homeowners who have been using their home equity as a piggy bank find their borrowing power is no longer growing now that property appreciation has come to a standstill. 'A lot of people unfortunately built that into their personal finances,' said Stan Close, of Riverview, a banker. 'That probably is a key contributor to people not feeling as good about their wealth.'"

From Reuters. "Costco Wholesale Corp on Wednesday warned of lower-than-expected quarterly profit because of disappointing gross margins. 'This could be an early sign that the higher-income consumer is finally starting to feel a bit of a pinch,' said Anthony Chukumba, an analyst with Morningstar."

"Those higher-income shoppers have proved resilient in the face of steep energy prices over the past year, but as the housing market slows, Wall Street has been worried that upscale retailers would start to suffer."

"'The company could begin to suffer from a decline in higher-margin discretionary spending due to slowing economic growth and a deceleration in the housing market, causing a less favorable sales mix and pressuring margins,' Lazard Capital Markets analyst Todd Slater wrote."

From Bloomberg. "'The tide is going out for all retailers at the moment,' said Christian Holland, who helps manage about $1 billion in London. 'Unless you've been on Mars, everyone's aware that the housing market is rolling over, and that does have obvious implications on the consumer's ability to prop up spending,' Holland said."