Consumers’ Expectations Were Steady in August
Consumers’ inflation expectations held for one-year, but dipped for the three-year horizon, according to the August Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
“Employment and wage growth expectations signal continued strength of the labor market, while consumers’ expectations of year-ahead increases in taxes continue to rise,” the survey noted.
Median inflation expectations held at 2.5% in August for a one-year period and slid to 2.6% from 2.7% for a three-year horizon.
Turning to labor, the expected earnings for one-year slid to 2.5% from 2.6%. This was above the 2.3% average reading in the category for the past year.
“Both the mean perceived probability of losing one’s job in the next 12 months and the mean probability of leaving one’s job voluntarily in the next 12 months were essentially unchanged,” according to the release.
The probability of finding a job, if one lost his or her current job, grew to 58.3% from 57.1%. Median expectation for oneyear ahead home prices is for growth of 3.3%, up from 3.2% last month, the Fed said.
Median household spending expectations rose to 3.0% from 2.8%, still below the average 3.2% reading for the past year. Income growth expectations fell to 2.7% from 3.0%.