COLONIE — Consumers across New York state were feeling more confident about the economy in September than they have in the past five years, according to a new survey by the Siena Research Institute.

The surge in optimism is being attributed to a stronger stock market and a recovering housing market. And while gasoline prices surged in August, they've at least stabilized, said Douglas Lonnstrom, the institute's founding director and a professor of statistics and finance at Siena College in Loudonville.

"Certainly, this is very positive news," he said of the findings. "We've reached a five-year high in overall consumer confidence." Several groups, he added, including Democrats, older people, women and lower-income respondents, all showed big gains.

"The fear that Social Security and Medicare were going to go down the tubes — people are (now) feeling that's not going to happen," he said. "Both presidential campaigns are saying they're going to fix the economy, so no matter who gets elected, there's a feeling things will improve."

The state's index was up 4.3 to 78.2, while the nation's index, compiled by the University of Michigan, gained 4.0 points to 78.3.

Both are two points above the break-even point of 76, where those who believe the economy is weakening equals those who believe the economy is improving.

Economists follow consumer confidence because they believe it reflects consumers' willingness to spend, and consumer spending makes up more than two-thirds of the nation's economic activity.

And the job market is "still iffy," Lonnstrom said. While the private sector continues to create jobs — 4,700 were added in the Capital Region over the past year to August — the number of unemployed has also been rising, and the unemployment rate stood at 7.8 percent in August, compared to 7.0 percent a year earlier.

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