US Consumers Report Deteriorating Finances in August, According to NY Fed Survey
According to a survey by the Federal Reserve Bank of New York released on September 8, more Americans reported their household finances had worsened over the past year and expected further deterioration ahead. The percentage of consumers who said their financial situation was much or somewhat worse than in July rose from 37.6% to 38.6%. Similarly, expectations for worsening conditions increased to 32.6%, up from 30.3%. While job loss fears declined slightly among workers, the perceived likelihood of rising unemployment reached its highest level since April 2020. The survey also showed mixed labor market sentiment and modest improvements in inflation expectations. Consumers' three-year price increase forecasts dropped marginally to 3.2%, while one- and five-year expectations remained unchanged at 3.6% and 3%. The data follows strong August job gains, with non-farm payrolls rising by 162,000, reinforcing the resilience of the labor market despite ongoing inflation concerns. The findings come ahead of a Federal Reserve meeting scheduled for September 15-16, where officials will assess whether current interest rates are sufficient to control inflation. The Bureau of Labor Statistics is set to release key price data later this week.
Topics: consumer finance economic sentiment inflation expectations unemployment