Consumers Anticipate Lower Spending, Higher Income Growth

Americans’ expectations for how much more they will spend in the next dropped sharply in April to land at 2.58 percent, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations. The outlook for household income growth rose, however, reaching 2.8 percent from 2.5 percent in March. Spending expectations were the lowest since the survey’s inception in June 2013, while income expectations reached a record high. Credit availability expectations in April were generally unchanged from March, with the number of households expecting a much easier time obtaining credit hovering within .02 percent of the month prior, or 3.33 percent.

Consumers’ expectations for price inflation over the next year rose slightly to 2.8 percent, and the three-year outlook also rose, reaching 2.9 percent in April. Uncertainty about inflation decreased.  Home price growth expectations in April increased slightly to 3.4 percent from 3.3 percent the month prior.

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