Consumer confidence on Long Island drops as grocery and housing prices go up

Long Isl and consumers are more pessimistic about their immediate financial future than at any time in the past 2½ years due in part to the rising cost of groceries and housing, according to a new poll.

The Siena Research Institute reported this week that its Index of Consumer Sentiment was 63.4 points in November in Nassau and Suffolk counties. That’s the lowest reading since June 2023’s 61.2, and down from 72.9 a year ago.

In the metropolitan area, which includes the Island, the index was 71.9 points in November, compared with 81 a year earlier. Statewide, the trend was similar.

Readings below the break-even threshold of 76 points indicate the number of consumers who are pessimistic about their financial outlook is larger than the number who are optimistic.

Prolonged inflation has made consumers worried about the future and less willing to open their wallets, said John A. Rizzo, an economist and Stony Brook University professor. Consumer spending, he added, accounts for about 70% of all economic activity.

"Unless these inflationary pressures are brought under control, consumer spending and economic growth will likely suffer on Long Island in 2026," he told Newsday on Wednesday.

On Main Street in Farmingdale, people said they’re feeling squeezed.

"From meat to eggs to electricity — everything’s just gone through the roof," said Michael Sanchez, 65, a retired gym teacher. "The only break we seem to be getting is at the gas pump."

Anna Walsh, 34, a receptionist, said she’s finding it more difficult to put money aside to go back to college.

"I’d like to get a better-paying job but that means getting a degree. I feel like for every step forward, I take two steps back," Walsh said.

According to the Siena survey, the high cost of food, housing and utilities in Nassau and Suffolk is among the factors holding down the local consumer-sentiment index reading.

More than 7 in 10 Long Islanders said grocery prices, mortgage and rent payments, and utility bills were having either a very serious or a somewhat serious impact on their finances in November.

The consumer price index for the metropolitan area climbed 3.4% in December compared with a year earlier.

The cost of electricity, natural gas and other home energy rose 6.1% in the period, while residential rent was up 3.9%. Groceries increased 3%, year over year, driven by the higher cost of baked goods, cereal, meat, fish and eggs, according to a report released on Tuesday.

Travis Brodbeck, associate director of data management at the institute, which is part of Siena University, said, "Consumer sentiment has seen a sustained decline since the 2024 election," with sharp drops in national, state and local surveys. However, "the break-even point between optimism and pessimism in New York is within reach."

The sentiment index is derived from a Nov. 17-21 poll of 839 New York State residents, including 102 Long Islanders. The margin of error is plus or minus 3.8 percentage points for the total sample and 11.7 points for the local sample.

By James T. Madore

james.madore@newsday.comJamesTMadore

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.