The New York Fed is out with its survey of consumer expectations for the current month :
September one-year ahead expected inflation 3.4% vs. August’s 3.2%
September three-year ahead expected inflation unchanged at 3%
September five-year ahead expected inflation 3% vs. August’s 2.9%
September labor market expectations lost ground
September year-ahead expected food price rise highest since March 2023
September household spending expectations cooled
In September, households upgraded view on personal finances
In September, households marked down future financial situation expectations
Households showed a mixed outlook. They marked down their expectations for future financial situations but upgraded their view of current personal finances. Spending expectations cooled, and labor market expectations weakened, while year-ahead food price expectations rose to their highest level since March 2023. Inflation expectations were higher: one-year ahead ticked up to 3.4% from 3.2%, three-year ahead held steady at 3%, and five-year ahead inched higher to 3% from 2.9%.
Overall, this report reflects a slightly weaker tone, as labor and spending expectations softened despite marginally higher inflation expectations and a modest improvement in current personal finance views.
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