A recently released survey by the Federal Reserve Bank of New York concludes that household finances could see significant growth this year. The survey indicates that median household income growth expectations rose 0.3 percent, its highest level since the survey’s inception in June 2013.
The uptick in consumer household finance expectations was driven primarily by respondents from the South and in the 40- to 60-year-old segment. In contrast, median household spending expectations declined late last year, driven primarily by high-income respondents.
Expected changes in credit availability a year from now or compared to a year ago remained mostly unchanged.
In addition, the survey points to trends in inflation, including home and gasoline prices. Median home price change expectations remained steady at 3.7 percent; gasoline price change expectations continued a four-month decline to 3.8 percent. Median earnings growth expectations jumped to 2.7 percent – again, its highest level since the start of the survey in June 2013.
Source: Federal Reserve Bank of New York
Published with permission from RISMedia.