Food prices make LI consumers pessimistic about the future
A shopper at a Target store. Credit: Getty Images/Joe Raedle
Long Island consumers may be slightly more pessimistic about their immediate financial future due to inflation, particularly the higher cost of groceries, according to a poll released on Wednesday.
The Siena College Research Institute reported its Index of Consumer Sentiment was 58 points last month in Nassau and Suffolk counties.
That’s lower than a year ago and in December, when the index was 59.9 and 62.4, respectively.
A reading below the break-even mark of 76 points means the number of residents who are pessimistic about their financial outlook is larger than the number who are optimistic, according to Siena pollster Don Levy.
The Island’s latest sentiment reading is also below that for New York City and the suburbs north and east, which was 81.3 points. Statewide, the index stood at 75.
“Driven by increasing optimism among New York City residents, younger New Yorkers, Democrats and men, consumer sentiment [for the state] was up this quarter reaching its highest level since June 2021,” Levy said. “But many — including upstaters, Republicans, those over 55 and women — saw little or no gain in confidence, and they continue to express far more pessimism than optimism.”
Retailers and economists closely follow confidence indexes because they indicate consumers’ willingness to open their wallets. Consumer spending accounts for about 70% of economic activity on Long Island and in the state and nation.
Consumers shop in a Target store. Credit: Getty Images/Joe Raedle
The latest sentiment reading is derived from Siena’s March 6-9 survey of 795 residents, including 103 in Nassau and Suffolk.
As for the cost of groceries, 77.2% of Long Islanders said they were either a very serious or somewhat serious problem. That compares with 82% of residents in the metropolitan area.
Regarding gasoline prices, 54.6% of people in Nassau and Suffolk said they were either a very serious or somewhat serious problem. That compares with 60% in the metro area.
"Gasoline price worries have lessened but remain well above early pandemic lows," Levy said.
The poll’s margin of error is plus or minus 9.9 percentage points for the Long Island sample and 3.9 points overall.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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