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

Americans’ expectations for how much more they will spend next year fell in March to 3.4 percent, declining from 4 percent in February, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations. The outlook for household income growth over the next year rose, however, landing at 2.6 percent, slightly higher than February’s figure but still below 2015 highs. Credit availability expectations rose from February.

Consumers said they expected levels of price inflation over the next year to decline, with median expected inflation one year ahead falling to 2.5 percent from 2.7 percent in February. Home price growth expectations in March returned to January’s record low of 3 percent, falling slightly from 3.08 percent in February.