Income expectations rose, but consumers expect to spend less, according to the Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
“While household income growth expectations increased and respondents’ outlook of their households’ overall financial situation reached a new series high, spending growth expectations dropped sharply to a series low,” the survey noted.
Median inflation expectations rose to 2.8% from 2.7% for a one-year period and gained to 2.9% from 2.7% for a three-year horizon.
Inflation uncertainty “declined sharply” for both the one-year and three-year horizons, hitting or surpassing series lows.
Turning to labor, the expected earnings for one-year gained to 2.5% from 2.4%. The mean perceived probability of losing one’s job in the next 12 months declined to 13.2% from 14.5%, while the chances of voluntarily leaving a job slipped to 19.9% from 21.3%. The probability of finding a job, if one lost his/her current job) fell to 56.5% from 59.3%.
Median one-year ahead home prices are expected to grow 3.4%, up from 3.3% last month, within the range seen recently, the Fed said.
Median household spending expectations slumped to 2.6%, the lowest since the survey began in June 2013, from 3.3%. Income growth expectations increased to 2.8% in April from 2.5% the prior month.
Gas price change expectations rose to 4.6% from 4.3%.