Long Island consumer confidence highest since 2008

A for sale sign posted in front of a house. Credit: IStock

By JAMES T. MADOREjames.madore@newsday.comJuly 12, 2012

Consumer confidence on Long Island edged up in the spring to its highest level since 2008.

The Siena College Research Institute Wednesday reported its confidence index for Nassau and Suffolk counties was 73.5 points in the April-June period, an increase of 0.4 from the first three months of this year.

The index is the highest it has been since Siena began tracking the sentiment of Long Islanders 45 months ago. Still, the index has yet to top 76.01, where the number of people optimistic about their economic well-being is greater than those who are worried.

Of the state's nine regions, New York City had the strongest confidence reading, at 79.3 points, in the second quarter. Albany and Rochester both had readings where optimism outpaced pessimism.

"Everybody is up from a year ago, so that's good," said Siena pollster Douglas Lonnstrom. A year ago, the Long Island index was 62.7 points.

He also said the recent decline in gasoline prices has buoyed consumers. "There is no question those figures would have been worse if gas prices were around $4 a gallon."

Retailers monitor confidence indexes because they often indicate the willingness of shoppers to open their wallets. Consumer spending accounts for about 70 percent of economic activity nationally.

Siena releases a monthly index for the metropolitan area and a quarterly index for Long Island. Both are based on telephone surveys of adults over age 18.

June's metro index was 77.8 points, down 0.1 from May.

Long Islanders' spending plans for the next six months are mixed, based on responses in April-June.

When asked about big-ticket purchases, consumers said they were less likely than in early 2012 to buy automobiles, furniture, computers or start a major home improvement project. However, they said they were more likely to buy a house.

At the South Shore mall in Bay Shore Wednesday, some shoppers said they hope to take advantage of record-low interest rates to go from renters to homeowners.

"My wife and I are saving up to buy a place," said Joe Tom, 29, an automobile salesman from East Islip. "Rates are so low right now, but we need prices to come down a bit to make this work for us."

Despite the declines in four of the five purchase categories locally, Lonnstrom said, "Confidence and the intent to purchase appear stronger today than they have been in recent memory."