Survey of consumer expectationsThe NY Fed is out with a survey of consumer expectations:
- One year ahead consumers see inflation of 2.6% versus 2.5% from last month’s survey
- Inflation expectations on a three-year horizon little changed at 2.8%
- median one year ahead earnings growth expectations fell to 2.12% from 2.25%
- medium year I had expected growth in government debt rose to 5.92% from 5.66%. This is the highest since October 2016
- consumers expect gasoline prices to rise 3.8% in the next year. They expect food prices to rise 4.3% and medical costs to rise 9.7%. They also expect education to rise 6.58% in red prices to rise 5.48%
- 12.77% of consumers expect to not be able to make minimum debt payment over the next three months (was 13.39%)
The consumer certainly has a greater expectations for inflation than that of the market and a worsening expectations for earnings too.