economy
Household worries over finances hit highest level since July 2022, New York Fed survey shows
While the central bank's monthly survey showed the inflation outlook mostly unchanged, the general perception of conditions deteriorated.
TL;DR
- The share of U.S. households perceiving their financial situation as "much worse" than 12 months prior has reached its highest point since July 2022.
- Overall, 43.7% of households view their current financial situation as worse than a year ago, the highest since January 2023.
- Consumer outlook for the coming year also shows pessimism, with 36% expecting their situation to worsen compared to 22.9% expecting improvement.
- Despite increased financial worries, inflation expectations for the one-, three-, and five-year horizons remained relatively stable.
- Expectations for gasoline prices decreased, while those for food and rent saw increases.
- The survey data comes amid consumer fears about the inflationary impact of the Iran war and soaring energy prices.