Con­sumers’ Ex­pec­ta­tions Were Steady in Au­gust

The Bond Buyer - - Market News - — Gary E. Siegel

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%.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.