Consumers’ Spending Expectations Fall, Income Expectations Continue to Rise

Americans’ expectations for how much more they will spend next year was 3.3 percent in August, falling for the first time since March, 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 grew, however, to 2.8 percent — its highest level since May 2015. Credit availability expectations also rose slightly in August.

Median expected inflation levels one year ahead moved up in August to 2.8 percent, following 2.5 percent in July and reaching its highest level of the year. The three-year inflation outlook also increased in August, landing at 2.7 percent from 2.5 percent the month prior. Home price growth expectations in August held steady at 3.3 percent.