Consumers’ Spending, Income Expectations Continue Upward Trend

Americans’ expectations for how much more they will spend next year was 3.8 percent in July, an increase from 3.6 in June and 3.5 percent in May, 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 2.8 percent. Credit availability expectations also rose slightly in July.

Median expected inflation levels one year ahead were unchanged from June’s 2.5 percent; however the three-year outlook declined, landing at 2.5 percent from 2.9 percent the month prior. Home price growth expectations in July rose to 3.3 percent from 3.11 percent in June.