Food, gas costs fuel consumer worries

Consumer confidence in the metropolitan area fell last month on heightened fears about the rising cost of food and gasoline.

The Siena College Research Institute reported Monday its confidence index for Long Island, New York City and the northern suburbs was 77.6 in July, down 0.2 point from the prior month.

A year ago, the metro-area index was 65.9. A reading above 75 indicates the number of people who are optimistic exceeds those who are pessimistic.

Siena pollster Douglas Lonnstrom said concern about soaring food costs later this year and next is dampening consumer confidence. "Worry about food prices spiked among women as nationwide drought conditions start to take effect," he said.

In the metro area, 68 percent of residents said last month that rising grocery bills were either a "somewhat or very serious problem." That's up 5 percentage points from June and the highest since March.

The cost of gasoline also is weighing on people. In the metro area, 52 percent of residents said in July that pump prices were either a "somewhat or very serious problem." The number increased from the prior month, when 48 percent expressed concern.

The July poll of 496 area residents has a margin of error of plus or minus 4.4 percentage points.

Retailers follow consumer confidence because it can indicate whether shoppers are willing to open their wallets.

Statewide, residents' spending plans for the next six months were bullish. When asked about big-ticket purchases between now and January 2013, consumers said they were more likely than a year ago to buy automobiles, computers, furniture and homes. The number expecting to start a major home improvement project was the highest in 28 months.

At the Sunrise mall in Massapequa Monday, some shoppers said they expect to spend far more for food staples such as meat, bread and milk, as well as prepared meals.

"Have you seen the pictures from out West? . . . The price of everything is going to go through the roof," said Michael Katz, a retired mechanic from Amityville. "Pretty soon, I'll be handing over my wallet to the clerk in the checkout line."