NY Fed Consumer Sentiment Survey: more households expect worse financial conditions
According to a consumer sentiment survey from the Federal Reserve (Fed) Bank of New York, the share of households bracing for higher inflation, worsening employment prospects, and deteriorating credit conditions has risen rapidly in recent months.
Key highlights
The share of households seeing a worse financial situation is the highest since October 2023.
March expectation unemployment will rise to the highest since April 2020.
In March, households were more downbeat on finances and credit access.
The survey found accelerating food and rent expected inflation in March.
In March, households were more pessimistic about jobs and future earnings.
One-year inflation expectations rise to 3.58% vs 3.13%.
US 3-year inflation expectations held at 3% in March.
US 5-year ahead expected inflation 2.9% vs. February's 3%.