US: Consumer expectation suggests a mixed picture - ANZ

Research Team at ANZ, notes that the NY Fed’s consumer expectation survey for July suggests a mixed picture, with long term inflation expectations falling, but future financing and household spending growth expectations improving.

Key Quotes

“Inflation over the next year was unchanged at 2.5%, however, the three-year ahead reading dipped to 2.5% from 2.9% last month. Survey respondents also reported higher expected growth in household income and spending over the coming year. The proportion who expect to be ‘financially better off in a year’ increased 3.1ppt to 36.2%. Spending is expected to grow 3.8% up from 3.6%. Household earnings are expected to grow 2.2% down from 2.5%.”