American consumers are more worried about inflation, unemployment and their overall financial health, according to a recent survey released Monday by the Federal Reserve Bank of New York.
The Survey of Consumer Expectations showed that consumers are expecting inflation to reach 3.6%, an increase of half a percentage point from February and the highest reading since October 2023.
The probability that the U.S. unemployment rate will be higher one year from now jumped 4.6 percentage points to 44.0%, the highest reading since April 2020, the survey found. The increase was broad-based across age, education and income groups, the central bank said.
About 16% of consumers are also expecting to lose their jobs in the next 12 months, the highest level since March 2024. The increase was largest for respondents with annual household incomes below $50,000.
Perceptions about a households’ current financial situations compared to a year ago deteriorated slightly, with a larger share of households reporting a worse financial situation compared to a year ago. In addition, 30% of households said they will likely be financially worse-off next year, the highest level since October 2023.
The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing and education to behave. It also provides insight into Americans’ views about job prospects and earnings growth and their expectations about future spending and access to credit.
