Fed Survey: Consumer Spending Expectations Little Changed

Americans’ expectations for how much more they will spend in the next year held steady at 3.0% in August from the prior month, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations released today. The outlook for household income growth ticked up slightly from 2.1% to 2.2%, driven mostly by respondents below the age of 40.

Consumers’ expectations for price inflation at the one-year horizon increased by 0.1 percentage points and at the three-year horizon by 0.3 percentage points, both reaching 3.0%. Expectations for how much home prices will rise continued to increase from a low of 0% in April 2020, to 2.0% in July and 2.8% in August.