Consumer outlook improves despite job worries, New York Fed survey finds
The New York Fed’s monthly Survey of Consumer Expectations found that more households expect to be better off a year from now.
TL;DR
- New York Fed survey shows increased optimism for 2026 financial standing.
- Consumers expect higher short-term inflation but improved year-ahead financial situations.
- Expectations for missing debt payments have risen to the highest level since April 2020.
- Job loss expectations have also worsened across all demographics.
- Delinquency rates increased in December, potentially continuing to rise due to joblessness.
- Consumer views on current financial situations have turned negative for the first time since July 2022.
- Credit card balances continue to edge higher, widening the divide in a K-shaped economy.
- The K-shaped economy benefits homeowners and stockholders but not all consumers.