Metro consumer confidence up in March

Despite rising prices for gasoline and food, consumer confidence in the metropolitan area increased in March -- reaching pre-recession levels.

The Siena College Research Institute reported Wednesday its confidence index for Long Island, New York City and its northern suburbs rose 4.7 points to 81.6 last month compared with February.

The index last month was at its highest point since July 2007. It also was above 75 for the third consecutive month, meaning the number of people who are optimistic about their financial well-being is greater than the number who are pessimistic.

Statewide, the confidence index climbed 1.5 points in March to 76.3. In February it fell, month-over-month, for the metropolitan area and was unchanged statewide.

"While the economy is not yet in full bloom, the roots of recovery, as measured by New York consumer sentiment, are now spreading and gaining strength," said Siena pollster Donald Levy. "We will see if soon they bear the long-awaited fruit of increasing consumer spending."

Levy also noted growing concern about the cost of gasoline and groceries.

Sixty percent of area residents called pump prices a "very serious" or "somewhat serious" problem, up 5 percentage points from February and the highest level since June 2011. Sixty-nine percent said food prices were a problem, an increase of 4 points from last month.

Retailers follow consumer confidence because it often signals the willingness of shoppers to make purchases. Consumer expenditures account for about 70 percent of economic activity nationally.

The spending plans for residents statewide were mixed. When asked about big-ticket purchases in the next six months, consumers told Siena they would be more likely to buy computers, furniture or start a major home-improvement project. However, fewer people expected to buy a home or automobile than a year ago.

At the Broadway Mall in Hicksville Wednesday, some shoppers said they were optimistic about the local economy and felt more comfortable spending than they did a few months ago.

"It looks like things are finally improving," said Darshan Singh, 23, a student from Hicksville who works part-time as a computer programmer. "I'm getting more hours at work . . . I almost have enough saved to buy the new iPad."

Purchasing plans

Percentage of state residents planning to buy big-ticket items in next six months:

CAR OR TRUCK: 8.7%, down 1 percentage point from March 2011

COMPUTER: 16%, up 2.1

FURNITURE: 18.7%, up 0.4

HOME: 3.4%, down 1

HOME IMPROVEMENT PROJECT: 16.9%, up 0.8

Note: Based on a March survey of 801 NYS residents over age 18

Source: Siena College Research Institute