The NY Fed survey showed:
1 year inflation expectations falling to 3.2% from 3.3%3-year inflation expectations remains unchanged at 2.8%5-year inflation expectations rises to 3.0% from 2.8%
Other details:
Median one-year inflation expectations fell to 3.2% in May from 3.3%, unchanged at 2.8% for three years, and rose to 3.0% from 2.8% for five years.Median home price growth expectations remained at 3.3%.Year-ahead price expectations: gas (4.8%), food (5.3%), rent (9.1%) unchanged; medical care up to 9.1%; college costs down to 8.4%.
Labor Market
Median expected earnings growth for one year stayed at 2.7%.Mean unemployment expectations rose to 38.6% from 37.2%.Probability of job loss decreased to 12.4%; voluntary job leaving increased to 19.6%.Probability of finding a new job rose to 52.2%.
Household Finance
Expected household income growth slightly up to 3.1%.Expected household spending growth down to 5.0%.Perceptions of current credit access unchanged; future credit access expected to tighten.Probability of missing a debt payment decreased to 12.0%.Expected year-ahead tax change down to 3.9%.Expected government debt growth decreased to 9.3%.Probability of higher savings account interest rates in 12 months increased to 27.0%.Improved perceptions of financial situations; 78.1% expect to be financially the same or better off in 12 months.Probability of higher U.S. stock prices in 12 months increased to 40.5%
This article was written by Greg Michalowski at www.forexlive.com.
