Consumer Confidence Hits Highest Level In Five Years
Loudonville, NY (WIBX) - New Yorkers are feeling more rosy about the economy, as consumer confidence levels for May rose to their highest levels since 2007.
According to Douglas Lonnstrom with the Siena Research Institute, consumer confidence jumped two points, to 76.6, and above the break even point where optimism equals pessimism. Nationwide, consumer confidence grew by 2.9 points, to 79.3.
"When the same number of people say better as say worse, that's when we get that index number of 75," Lonnstrom said. "Right now, we're getting people saying slightly better, than are saying slightly worse. So, we're just barely above that break even point."
Lonnstrom says lower gas prices and a more positive current outlook helped contribute to the rise. Home buying plans also saw a jump, increasing to 5.7 percent and their highest level since 2007.
" The figures went up almost two points, and that's a big jump," Lonnstrom said. "That's a 40 percent increase from the prior month. So, while it's not a huge figure, it's up near six percent and that's a pretty strong figure for home buying. So, if we could see the home market turn around that would be a very, very nice boost for consumer confidence."
Although the signs are encouraging, Lonnstrom says other factors, including the turbulent stock market and weak job reports may temper higher growth.