Household spending expectations have fallen in the month of August amid elevated inflation rates, signaling potentially bad days ahead for the American economy.
“Median household spending growth expectations fell sharply to 6.0 percent from 7.8 percent in August, its steepest one-month decline since the series’ inception in June 2013, and its lowest reading since January of this year. The decline was broad-based across demographic groups,” according to an Oct. 11 press release from the Federal Reserve Bank of New York, highlighting the institution’s September 2022 Survey of Consumer Expectations. Though inflation expectations in the short term posted a decline, they increased for both medium and longer terms.
