Consumer confidence improves slightly

Sales numbers are improving and consumer confidence seems to be returning little by little.

That's the gut feeling from a lot of local businesses.

Consumers could be budgeting better or they might be feeling more comfortable with their spending. Either way, the results from the holiday shopping season should show moderate improvement, storeowners have said.

"I'm noticing a difference," said Randy Kras, co-owner of Quality Guitars in Spring Hill. "Our traffic is up and even our sales are up."

Steve Wilson, the business service manager at Career Central, said large retailers didn't make as many across-the-board hires in time for Christmas. It was a sign they weren't expecting a strong season.

The high sales numbers - particularly for electronics - caused some retail analysts to reevaluate their forecasts for December.

The positive sales numbers were welcome news, but not overwhelming, Wilson said.

"We have seen a little bit of an uptick, but we haven't been flooded," he said. "We are running a lot better this Christmas compared to last."

John Athanason, a spokesman for Weeki Wachee Springs State Park, thinks the positive signs could partially be a result of lowered prices.

Eighteen months of continuous declines in revenue will cause businesses to explore cheaper price options.

Weeki Wachee lowered its entrance fee and the result has been more traffic, he said.

"I think it's pretty evident things are better compared to the last couple of years," said Athanason. "We're not seeing a drastic change, but it's definitely there."

Donna Molines is the owner and president of Body Fitness Inc., a local fitness center that offers cheaper monthly rates compared to Gold's Gym and the YMCA.

Molines offers fewer machines and amenities, but her business still provides personal training, which has seen some gains this year, she said.

She also thinks people will opt for a smaller, locally owned business over a big chain, especially when it is a cheaper alternative. Luxuries such as steam rooms and big-screen televisions don't seem to be as much of a priority among customers these days, she said.

"We've found a good niche and we're in the right market," Molines said.

Economists think the biggest indicators of a return in consumer confidence will be when the housing market improves and unemployment goes down.

"A bounce back in the mortgage market would allow potential homebuyers to get into the market," said Allison Specht, an economist with the American Farm Bureau. "That's been a real drag on consumer confidence."

Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida, said businesses for the most part are seeing a "transition from a severe depression to a milder version of the same depression."

Nonetheless, consumers are feeling relief they're no longer wading through the "deepest point of hell," he said.

In the meantime, businesses must feel confident enough to hire more workers before such confidence spreads across the retail and housing sectors.

"Once it's clear that the worst is over and layoffs are behind us, people will be confident to purchase again," Snaith said.