Consumers’ Spending Expectations Increase

Americans’ expectations for how much more they will spend in the next year were at 3 percent in August, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations—up from 2.8 percent in July, but remaining below the 12-month average of 3.2 percent. The outlook for household income fell from 3 percent to 2.7 percent. Credit availability expectations also dipped slightly in August.

Consumers’ expectations for price inflation over the next year remained unchanged at 2.5 percent, while the three-year outlook decreased slightly from 2.7 percent in July to 2.6 percent in August. Uncertainty about inflation in the next year was also unchanged. Home price growth expectations in August edged up to 3.3 percent, up from 3.2 percent the month prior and in line with the average over the past 12 months.

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