N.Y. Fed: Consumers Anticipate Higher Spending Growth, Lower Income

Americans’ expectations for how much they will spend next year rose in October to 3.5 percent, following three consecutive monthly declines, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations. However, the outlook for household income growth over the next year fell sharply in October to 2.3 percent, the largest drop since the survey’s inception.
Also falling to a record low was the median inflation outlook for three years ahead. Credit availability expectations were unchanged year-on-year, but the outlook for one year ahead improved slightly. Home price growth expectations were nearly unchanged, at 3.05 percent from 3.09 in September, but remain below expectations reported since October 2013.