Consumers expect household income, earnings and household spending growth to slow, according to the December Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
Impressions of the labor market were termed "mixed," with the chance of layoff dropping, but the possibility of finding a new job if the current job was lost, also fell, according to the Fed.
"Median expected inflation remained flat at the one-year ahead horizon, tying last month's series low, whereas it increased slightly at the three-year horizon," the survey reported. The one-year median inflation expectation was at 2.5%, virtually unchanged from November, while the three-year expectation rose to 2.8% from 2.7%.
Median one-year ahead home prices are expected to grow 3.0%, off from 3.2% last month.
Median household spending expectations slumped to 2.9% from 3.6%.
Earnings growth expectations fell to 2.3% from 2.6%.
