The month of September saw a 2.9% increase in consumer confidence among New Yorkers, according to the latest poll by Siena Research Institute.
SRI Founding Director Doug Lonnstrom says although the survey was taken before the partial government shutdown began, New Yorkers still had plenty of concerns to temper their optimism about the economy. “The debt ceiling, the slow growth projections, the weak job market. There’s now a fear of higher interest rates and inflation worries. High income people are worried about higher taxes, there’s a lot of talk about that. And on top of all of that we’ve got the health care debate.”
Despite those worries, Lonnstrom says the survey shows that the percentage of New Yorkers who say they're going to buy a new home is now at a five year high. That demand, he says, is driven by those earning less than $100,000 per year. “I think two things are happening are there. One is, they see home prices going up. They’ve had pent-up demands since 2008, so they think now they better buy before (the prices) keep going up. Second they’re afraid their mortgage rates will go up.”
Lonnstrom says if the government shutdown and debt ceiling debate go on for more than a week or two, consumer confidence will likely fall.
