Consumers’ inflation expectations dipped, but respondents see households’ financial condition improving, according to the January Survey of Consumer Expectations, released by the Federal Reserve Bank of New York on Monday.
“[C]ontinued improvement in expectations about households’ year-ahead financial situation and credit availability, and robust expected earnings growth” were reported, according to the survey, while “[s]hort- and medium-term inflation expectations fell slightly
Median inflation expectations slid to 2.7% in January from 2.8% in December for a one-year period and increased to 2.8% from 2.9% for a three-year horizon.
Turning to labor, the expected earnings growth for one-year climbed to 2.73%, a new series high, from 2.67%. The mean perceived probability of losing one’s job in the next 12 months rose to 14.9% from 13.8%, while the mean probability of leaving one’s job voluntarily in the next 12 months gained to 22.1% from 21.7%.
The probability of finding a job, if one lost his/her current job, dipped to 59.7% from 60.0%.
Median one-year ahead home prices are expected to grow 3.5%, up from 3.2% last month, the Fed said.
Median household spending expectations held at 2.9%. Income growth expectations remained at 2.8%.
