Consumers more optimistic about rising wages, N.Y. Fed says
WASHINGTON -- Consumers last month were more optimistic their wages would rise, and expected to spend more this year, according to survey results Monday from the Federal Reserve Bank of New York.
Americans also expected inflation to slow somewhat to 3% in the coming year, the district bank’s Survey of Consumer Expectations said.
Last month, the bank released the first results of its new monthly survey on consumer confidence.
The latest survey, conducted in January, found that consumers expected their earnings to grow by 2.4% over the next year. The figure was up from 1.8% in December.
Consumers expected to spend only some of that money. The survey found they anticipated their spending to rise at a slower pace: 4.85% over the next year, up from 4.66% growth in December.
Expectations for the labor market improved as well. The probability of finding a job increased to 49% in January, from 46% the previous month, the survey reported.
But Americans’ view of the probability of losing their job was little changed, it said -- 16.74% expected to be fired or laid off last month compared with 16.79% in December.
[Updated, 10:51 a.m. PST Feb. 10: An earlier version of this post stated that the Survey of Consumers was done by the Federal Reserve. It is done by the Federal Reserve Bank of New York.]
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