Fed survey: American households expect income and spending growth
Positive perceptions of debt, interest, taxes, credit availability and overall financial standing.
The latest survey data reveals American households are anticipating solid future income growth, as well as planning a substantial increase in spending, while remaining less concerned about debt repayments.
The Federal Reserve Bank of New York’s November 2017 Survey of Consumer Expectations found median expected household income growth rose from 2.6% in October to a series high 3% last month. The last time this figure hit 3% was in July. The increase was broad-based across age, income and education groups.
Month-on-month median household spending growth expectations rose decidedly (0.8%) in November (3.6%), broad-based across education and income groups. This outlook is higher than the 12-month average of 3.1%.
Credit availability expectations jumped up slightly year-on-year, while year-ahead expectations were polarized.
The average perceived probability of missing a minimum debt payment over the next quarter fell slightly (0.3%) to 12.5% month-on-month in November, staying below the annual average, which hovers around 13%.
Median expectations of year-ahead changes in taxes at the current income level rose steadily during the first half of the year but recently stabilized. Consumer forecasts for November remained flat at 2.3%.
The perception that average interest rates on savings accounts will be higher in one year has continued to grow consistently, increasing from 32.9% in October to 34% in November, similar to July and August’s forecasts.
Households’ also raised year-ahead expectations of their overall financial situations, growing from 40.9% of respondents in October to 42.2% in November. These expectations have been rising, up from 37.7% in 2016.
The national, internet-based survey involves a rotating panel of approximately 1,300 household heads.
Around a quarter of a million jobs were created throughout the United States in November, with particularly high growth in the education and healthcare industries, as well as professional and business services.
A recent global study highlighted the importance of offering employees travel opportunities, with more than one third of working professionals surveyed admitting they would pursue a new job if it offered business travel.
- Where to live stream Spain vs Morocco online in USA
- Where to live stream Iran vs Portugal online in the USA
- Where to live stream Saudi Arabia vs Egypt FIFA World Cup 2018 online in the USA
- Ripple CEO: One bank will use XRP in 2018
- Where to livestream Serbia vs Switzerland FIFA World Cup 2018 online in the US