Consumers Expect Higher Spending, Income Growth

Americans’ expectations for how much more they will spend next year was 3.6 percent in June, a slight upward tick from May’s 3.5 percent, 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 also rose, landing at 3.6 percent, a slight increase from May’s 3.5 percent. Credit availability expectations rose slightly in June.

Median expected inflation levels one year ahead decreased slightly to 2.5 percent; however the three-year outlook increased, landing at 2.9 percent. Home price growth expectations in May fell slightly to 3.11 percent and remain below average.