Upstate New York consumers became slightly less optimistic about the economy in the second quarter than they were in this year’s first three months, according to a new report. Consumer sentiment in upstate New York was measured at 62.4 in the second quarter of 2023, down 2.2 points from the last reading of 64.6 in […]
Upstate New York consumers became slightly less optimistic about the economy in the second quarter than they were in this year’s first three months, according to a new report.
Consumer sentiment in upstate New York was measured at 62.4 in the second quarter of 2023, down 2.2 points from the last reading of 64.6 in this year’s first quarter. That’s according to the latest quarterly survey of Upstate and statewide consumer sentiment that the Siena College Research Institute (SRI) released July 6.
Upstate’s overall sentiment of 62.4 in the second quarter was 11.1 points below the statewide consumer-sentiment level of 73.5, which dipped 1.5 points from the first quarter.
The statewide reading was 9.1 points higher than the second-quarter figure of 64.4 for the entire nation, which was up 2.4 points from the first quarter, as measured by the University of Michigan’s consumer-sentiment index.
New York’s current consumer sentiment index decreased 0.4 points to 69.7 and the future index decreased just over 2 points resulting in New York’s measure of future expectations moving from 78.1 last quarter to 75.9 today. Overall confidence remains higher in New York than across the nation. Future confidence in the Empire State is now one point above the breakeven point of balanced optimism and pessimism and 14.4 points higher than national future confidence.
Consumer sentiment dipped slightly across New York state this quarter, but the overall and future scores continue to outpace national sentiment, Donald Levy, SRI director, said in the survey report.
“However, in New York scores vary wildly. New York City area consumers are more optimistic than pessimistic, [exceeding] the national score by nearly 16 points and the NYC index is nearly 18 points higher than Upstate,” Levy said. “Democrats’ index is over 10 points higher than the city and a whopping 32 points above Republicans across the state. Geography and politics matter when it comes to New Yorkers’ economic outlook.”
In the second quarter of 2023, buying plans were up 2.2 percentage points from the first-quarter measurement to 47.2 percent for consumer electronics; buying plans were down 4.5 points to 12.6 percent for homes; declined 0.8 points to 27.4 percent for cars and trucks; dipped 0.6 points to 30.2 percent for furniture; and slid 1.8 points to 26.2 percent for major home improvements.
“Despite declines in current demand for homes and home improvements, those buying plans as well as those for cars, electronics and furniture are all up between two and nine points from this time last year,” Levy said.
Gas and food prices
In SRI’s quarterly analysis of gas and food prices, 62 percent of Upstate respondents said in the second quarter that the price of gas was having a serious impact on their monthly budgets, down from 70 percent in the first quarter, and down from 68 percent in the final quarter of last year.
In addition, 62 percent of statewide respondents said the price of gas was having a serious impact on their monthly spending plans, off from 63 percent in the first quarter of this year and 66 percent in the fourth quarter of 2022.
When asked about food prices, 79 percent of Upstate respondents in the second quarter indicated the price of groceries was having a serious impact on their finances, unchanged from the first quarter and down from 80 percent in the fourth quarter of last year.
At the same time, 79 percent of statewide respondents indicated the price of food was having a serious impact on their monthly finances, down from 81 percent in the first quarter of the year and unchanged from the final quarter of 2022.
SRI conducted its survey of consumer sentiment between June 4 and June 12 by random telephone calls to 382 New York adults via landline and cell phone. It has an overall margin of error of plus or minus 3.7 percentage points, according to SRI.