economy
Nearly half of Americans say they're worse off financially than a year ago, NY Fed finds
The U.S. economy may be holding up better than expected, but Americans are growing more pessimistic about their personal finances.
TL;DR
- 48% of Americans reported their financial situation was worse in May than a year ago, a high not seen since January 2023.
- Consumer optimism about future financial improvement has reached its lowest point since October 2022.
- Inflation, driven by rising oil and gas prices, is expected to accelerate to 4.2% annually.
- Public anxiety about the labor market is increasing, with more people fearing job loss and lower confidence in finding new employment.
- Wages are not keeping pace with inflation, eroding consumer purchasing power.
- Credit card delinquencies have reached their highest level since 2011, signaling financial struggles.