Fed Reports Record High for Consumers’ Household Income Growth Expectations
8/21/2017 1:48 PM
The Federal Reserve Bank of New York’s Survey of Consumer Expectations for July reflects little change in their perceptions for credit availability and keeping up with debt payments.
Consumers’ household income expectations for the year ahead reached a record high in July while their perceptions for credit availability and keeping up with debt payments did not change significantly, according to results from the Federal Reserve Bank of New York’s latest Survey of Consumer Expectations.
“Median expected household income growth increased 0.3 percentage points in July to 3 percent, its highest level since the inception of the survey in June 2013,” according to a news release from the Fed.
The survey also shows consumers’ median household spending growth expectations declined from 3.3 percent in June to 2.8 percent in July, according to the news release.
The Fed surveyed consumers about their perceptions for credit availability compared to a year ago, which improved somewhat, while the year-ahead expectations for credit availability stayed largely unchanged.
For example, the percentage who said obtaining credit in July compared to a year ago would be “much harder” declined from 5.8 percent to 4.67 percent and the percentage who said it would be “somewhat easier” increased from about 20 percent to about 23 percent, according to the survey.
Consumers’ average perceived probability of missing a minimum debt payment over the next three months remained “relatively stable” at 12.2 percent in July, the Fed reports.
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.
The full survey results are available on the Fed’s website.
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