US households’ views of finances are brightest since early 2020
Nearly 38% of consumers foresee being somewhat or much better off, according to data from the Federal Reserve Bank of New York
THE share of US households expecting their financial situations to improve over the next year climbed in November to the highest level since early 2020, according to a survey released on Monday (Dec 9).
Nearly 38 per cent of consumers foresee being somewhat or much better off, according to data from the Federal Reserve Bank of New York. The percentage of people who anticipate a worse financial situation, meanwhile, dropped to the lowest level since May 2021. About 42 per cent of Americans expect conditions to remain roughly the same.
“Year-ahead expectations about households’ financial situations improved considerably in November,” the New York Fed wrote in a statement.
US voters in November re-elected former president Donald Trump. Many voters cited the economy and concerns about inflation as top issues.
The survey also showed that consumers have a brighter outlook for equities. The average perceived odds that US stock prices will be higher in a year increased by 1.3 percentage points to 40.4 per cent. Expected income growth also edged higher.
Inflation expectations, meanwhile, increased by 0.1 percentage point across all three time horizons studied in the survey. Americans anticipate 3 per cent price growth in one year, 2.6 per cent in three years and 2.9 per cent in five years. Respondents’ uncertainty about those figures also increased. BLOOMBERG
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