Consumers’ Financial Expectations Worsen Somewhat in May
6/15/2017 7:15:00 PM
The Federal Reserve Bank of New York’s Survey of Consumer Expectations shows perceptions on credit availability and keeping up with minimum debt payments.
The Federal Reserve Bank of New York’s lastest Survey of Consumer Expectations shows “few signs of optimism” when considering consumers’ financial outlook on spending and credit availability in May.
Main findings on household finance in the survey include:
- The median expected household income growth was 2.74, a minor decline from 2.76 percent in April. Median household spending growth expectations remained at about 2.6 percent in April and May, marking a series low since the Fed started the Survey of Consumer Expectations in 2013. In March this year, median spending expectations reached 3.29 percent before dropping in April.
- Consumers’ perceived change in credit availability compared to a year ago improved slightly in May, however their expectations for credit availability in the year ahead worsened, according to the survey. For example, in April 5.3 percent of respondents said access to credit a year from now would be much harder, compared to 6.32 percent in May.
- The Fed reports the average perceived probability of missing a minimum debt payment over the next three months increased from 12.2 percent in April to 13.1 percent in May, but the probability is still below the average reached in 2016 – 13.3 percent.
The full survey results are available on the Fed’s website.
The Survey of Consumer Expectations is based on consumers’ expectations for overall inflation and how they expect prices for food, gas, housing and education to behave. It also shows consumers’ views on job prospects, earnings growth, and their expectations about future spending and access to credit.
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