US Consumers Expect Higher Inflation In Next Few Years: NY Fed Survey

RTTNews | 21h 30min ago
US Consumers Expect Higher Inflation In Next Few Years: NY Fed Survey

(RTTNews) - U.S. consumers' inflation expectations for the next three years increased sharply in December, while unemployment concerns were mixed, results of a monthly survey by the Federal Reserve Bank of New York showed on Monday.

Median inflation expectations for the one-year horizon were unchanged at 3.0 percent but they increased to 3.0 percent from 2.6 percent for the three-year horizon. Price growth expectations for the 5-year horizon declined to 2.7 percent from 2.9 percent.

The monthly University of Michigan survey showed on Friday that the year-ahead inflation expectations soared to 3.3 percent in January from 2.8 percent in December, reaching the highest level since May 2024.

The UoM survey also showed that long-run inflation expectations surged to 3.3 percent in January from 3.0 percent in December.

The NY Fed survey showed that households expressed more uncertainty regarding future inflation outcomes at the one- and three-year horizons and less at the five-year horizon.

Consumers' earnings growth and unemployment expectations for the next 12 months eased. However, their hopes of finding a job in the event of losing the current one declined sharply, to the lowest reading since April 2021.

Households' income growth expectations decreased, while they expect to spend more. There was a sharp increase in the perceived probability of missing a minimum debt payment over the next three months. The level equaled the September 2024 reading, which was the highest level of the series since April 2020, the survey said.

read more
US NFIB Small Business Confidence Highest In Over 6 Years

US NFIB Small Business Confidence Highest In Over 6 Years

Small business confidence in the U.S. improved in December to its highest level in more than six years as the uncertainty over the economic outlook cleared following the presidential election in November, results of a survey by the National Federation of Independent Business showed on Tuesday.
RTTNews | 6h 15min ago
U.S. Consumer Sentiment Edges Lower In January As Inflation Expectations Surge

U.S. Consumer Sentiment Edges Lower In January As Inflation Expectations Surge

Consumer sentiment in the U.S. has unexpectedly seen a modest deterioration in the month of January, according to preliminary data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index edged down to 73.2 in January from 74.0 in December. Economists had expected the index to inch up to 74.5.
RTTNews | 4 days ago
U.S. Job Growth Far Exceeds Estimates In December

U.S. Job Growth Far Exceeds Estimates In December

A closely watched report released by the Labor Department on Friday showed employment in the U.S. increased by much more than expected in the month of December. The Labor Department said non-farm payroll employment surged by 256,000 jobs in December after jumping by a downwardly revised 212,000 jobs in November. Economists had expected employment to climb by 160,000 jobs.
RTTNews | 4 days ago
Fed Officials Prefer Careful Approach To Rate Decisions Amid Inflation Risks

Fed Officials Prefer Careful Approach To Rate Decisions Amid Inflation Risks

Many Federal Reserve officials believe a careful approach to interest rate decisions will be necessary over the coming quarters, according to the minutes of the central bank's December monetary policy meeting. The minutes said the careful approach will be needed due to a variety of factors, including increased upside risks to the outlook for inflation.
RTTNews | 5 days ago
U.S. Wholesale Inventories Dip 0.2% In November, In Line With Estimates

U.S. Wholesale Inventories Dip 0.2% In November, In Line With Estimates

Wholesale inventories in the U.S. dipped in line with estimates in the month of November, the Commerce Department revealed in a report released on Wednesday. The Commerce Department said wholesale inventories slipped by 0.2 percent in November, matching the preliminary estimate as well as economists' expectations.
RTTNews | 6 days ago
U.S. Jobless Claims Unexpectedly Slip To Nearly Eleven-Month Low

U.S. Jobless Claims Unexpectedly Slip To Nearly Eleven-Month Low

With the more closely watched monthly jobs report looming, the Labor Department released a report on Wednesday unexpectedly showing another modest decrease by first-time claims for U.S. unemployment benefits in the week ended January 4th. The report said initial jobless claims slipped to 201,000, a decrease of 10,000 from the previous week's unrevised level of 211,000.
RTTNews | 6 days ago
U.S. Private Sector Job Growth Slows More Than Expected In December

U.S. Private Sector Job Growth Slows More Than Expected In December

Private sector employment in the U.S. increased by less than expected in the month of December, according to a report released by payroll processor ADP on Wednesday. The report said private sector employment rose by 122,000 jobs in December after climbing by 146,000 jobs in November. Economists had expected private sector employment to grow by 140,000 jobs.
RTTNews | 6 days ago