New Yorkers are increasingly concerned about pocket-sized economic woes brought on by the war in Ukraine, soaring gasoline costs and rising inflation that could cool an economic recovery from the COVID pandemic, according to a Siena poll released Thursday morning college revealed.
They expect the war in Ukraine to have long-term economic repercussions for the United States, while most have also noted that inflation has taken its toll on their bank accounts. Many New Yorkers are also saying they will be cutting back on spending and have seen their utility bills rise and the value of their retirement accounts fall.
All in all, it’s a sign that New Yorkers fear a combination of events could prompt them to cut spending at a time when pandemic-related restrictions are easing and officials are anxious to that people are spending money in restaurants, cinemas and bars again.
“Inflation had caught the attention of New Yorkers, but now with the war in Ukraine, consumers are very concerned and many are planning to make cuts,” said Don Levy, director of the Siena College Research Institute. “While a third believe the war will soon be over and that our finances will not be severely affected, more than half believe the war in Ukraine will unleash economic shockwaves that New Yorkers will experience for years to come .”
The poll found that 54% of New Yorkers expect the war in Ukraine and international efforts to stem the Russian invasion will have long-term economic repercussions, including increasing financial hardship for Americans.
The survey found that inflation had a very negative effect on 26% of New Yorkers or a somewhat negative effect on 44% of respondents. More than a third of people earning less than $50,000 said inflation is a serious problem.
The vast majority of New Yorkers are also concerned about the rising cost of basic necessities: 87% are concerned about grocery prices, 80% are concerned about the cost of gas, and 76% are concerned about their utility bills. 68 percent of New Yorkers are also worried about the value of their retirement accounts.
And all of these concerns could have a broader impact on the consumer economy. With prices rising, 69% of New Yorkers plan to shop less in general, and 67% plan to spend less on expensive items. Almost a third, 28% of New Yorkers will use their savings to pay for basic necessities.
And 34% plan to postpone or cancel a vacation in the next six months, while 35% are considering taking on a second job or generating a second source of income, according to the survey.
Many of the New Yorkers most likely to be affected by the need to make more money in their homes are aged 18 to 34, are black or Hispanic, or have children at home. More than 25% plan to reduce their savings account contributions.
“We’ll have to wait and see how the economy responds this spring and summer and what the impact of the war in Ukraine will be, but for now, New Yorkers, tired of two years of COVID, are raising economic concerns that will keep them busy making decisions and maybe.” slow economic activity in New York,” Levy said.
The survey of 801 New York residents was conducted March 14-17. It has an error rate of 3.7 percentage points.