1. Economic Outlook Orlando, FL January 11 th, 2011

2. U.S. Forecast  Are we past the gravy boat and getting into the meat and potatoes of this recovery?  The recovery appears to be gaining momentum  Fiscal and Monetary Policy Stimulus  QEII  Extension Bush Tax Cuts, new payroll tax cuts and investment stimulus

3. U.S. Forecast  Tectonic Forces Impacting Consumers:  Pent-up Demand, Rising Incomes  An upward force on consumer spending  Lost Wealth, Labor Market  Downward force on spending

4. U.S. Household Wealth (Trillions of $) 20052006200720082009 Q1 2010 Q3 Total Assets 71.677.678.665.863.168.8 Financial Assets 43.348.150.641.439.945.7 Net Worth 59.564.164.251.548.954.9 Home Equity 13.212.810.36.96.06.4

5. U.S. Economic Outlook 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 GDP % Change, Annual Rate 2.63.13.43.02.53.1 Consumer Price Index % Change, Annual Rate 1.52.81.31.61.71.9 Consumer Sentiment 68.3 71.374.775.877.278.9 Consumption % Change, Annual Rate 2.44.23.41.13.02.6

6. U.S. Forecast

8. A look at the Florida housing data: November 2010 Snapshot

9. Realtor SalesMedian Sales Price Region or MSA November 2010 November 2009 %Chg November 2010 November 2009 %Chg STATEWIDE 11,90013,961-15$132,700$139,300-5 Orlando 1,8672,292-19$127,300$137,100-7 Miami 67945549$171,500$184,800-7 Pensacola 263330-20$134,200$150,500-11 Jacksonville 9121,101-17$144,700$151,600-5 Tampa-St. Petersburg 2,0602,282-10$125,000$139,100-10 Florida Sales Report – November 2010 Single-Family, Existing Homes

10. A look at the housing data: January 1994– November 2010

15. Florida Forecast  In 2010 the recovery began, we finished some repairs, loaded up and pushed back from the gate and slowly taxied to the runway  2011 is our runway  We are cleared for takeoff  As year progresses we will pickup speed  Job growth doesn’t takeoff until 2012 and 2013  Turbulence  Demographics hinder recovery  Housing market woes weigh  Budget shortfalls: State & local government

16. Florida Economic Outlook IEC 4 th Quarter 2010 Forecast

17. Florida Economic Outlook IEC 4 th Quarter 2010 Forecast

18. Florida Economic Outlook IEC 4 th Quarter 2010 Forecast

19. Florida Economic Outlook IEC 4 th Quarter 2010 Forecast

20. Region Population Growth Average % ChgRank Florida 0.9--- Deltona 0.18 Gainesville 0.37 Jacksonville 1.04 Lakeland 1.32 Miami 0.85 Naples 1.13 Ocala 1.81 Orlando 1.32 Palm Bay 0.56 Pensacola 0.56 Tallahassee 0.37 Tampa 0.85 2010-2013 Averages; Q4 2010 Forecast

21. Region Employment Growth Average % ChgRank Florida 2.2--- Deltona 1.36 Gainesville 1.07 Jacksonville 2.13 Lakeland 1.45 Miami 1.74 Naples 2.22 Ocala 1.45 Orlando 2.51 Palm Bay 0.38 Pensacola 1.45 Tallahassee 1.07 Tampa 2.22 2010-2013 Averages; Q4 2010 Forecast

22. Orlando Metro Forecast

24. 2010-2013 Averages; Q4 2010 Forecast ORLANDO Sector % Average Annual Growth Professional & Business Services 7.6 Education-Health Services 3.0 Leisure & Hospitality 1.9 Manufacturing 1.5 Other Services 1.4 Trade, Transportation & Utilities 1.1 Construction & Mining 1.1 Financial 0.7 Information 0.6 State & Local Government 0.4 Federal Government -0.5

25. Sean M. Snaith Sean M. Snaith, Ph.D.Director Institute for Economic Competitiveness (407) 823-1453 Sean@SeanSnaith.comWWW.IEC.UCF.EDU Thank you