LI consumer confidence drops amid anxiety

Consumer confidence on Long Island has reached its lowest point since early 2009, when the recession was still in full swing, according to a poll released Monday.

The Siena College Research Institute reported its confidence index fell to 61.8 in the July-September period, from 62.7 in April-June. Readings below 76.01 indicate the number of residents expressing pessimism about their economic well-being is greater than those who are optimistic.

This is the second straight quarter in which confidence has dropped in Nassau and Suffolk counties. The local index, begun about three years ago, reached its highest point, 71.1, in January-March of this year.

"Let's recap: debt-ceiling crisis, national political turmoil, Europe hanging by a thread, Wall Street roller coaster and no new jobs in sight -- no surprise the third quarter saw confidence drop," said Siena pollster Douglas Lonnstrom.

The pessimism seen on Long Island was pervasive statewide in the survey. Only Albany-area consumers were more optimistic about their financial circumstances in the recent quarter compared with April-June.

Lonnstrom said worries about job security and another recession dampened residents' outlook for their long-term financial health. With the exception of Long Island and Albany, residents were also pessimistic about short-term prospects. The latter gauge was unchanged in Nassau and Suffolk from April-June and rose significantly in Albany.

Retailers closely follow consumer confidence indexes, which often indicate the willingness of shoppers to open their wallets. Consumer spending accounts for about 70 percent of the nation's economic activity.

The number of Long Islanders saying they plan to purchase a home, automobile, furniture or start a major home-improvement project in the next six months was down from the April-June period. The largest decline was in cars and trucks. However, there was an increase in the number of people planning to buy computers compared with the second quarter.

The survey is based on more than 400 interviews conducted locally from July through last month.

Some commuters on a rush-hour Long Island Rail Road train from Long Beach to Manhattan Monday were glum about the U.S. economy and their circumstances. Many expressed frustration about falling stock prices, while others said they feared being laid off.

"I'm just hanging on and thankful I have work," said Joseph Murphy, 37, a sheet-metal worker from Island Park. "I need a new car but have put it off for now. Things seem really bad . . . I don't expect them to get better for at least a year."

Alice Stein, 50, a book editor, said she had lost faith in Washington's ability to revive the U.S. economy. "The White House, Congress, they just can't get their act together, and it's the little people who are hurt," the Valley Stream resident said.