New York Fed: Consumer Expectations Improving

The Federal Reserve Bank of New York June 2020 Survey of Consumer Expectations showed a continued gradual decline in pessimism about household financial conditions.

Although consumers overall remain less optimistic about earnings growth, income growth, and job finding expectations compared to the pre-COVID-19 environment, some indicators showed considerable improvements in JuneThe survey results, released by the New York Fed’s Center for Microeconomic Data, further revealed that home price growth expectations increased and the average probability of missing a future minimum debt payment reached a new low.

In addition, median inflation expectations decreased at both the one-year and three-year horizons. Uncertainty and disagreement about future inflation declined as well.

Median inflation expectations for a one-year period declined from 3% in May to 2.7% in June and decreased at the three-year level to 2.5% in June from 2.6% in May.