Expectations for the Labor Market and Spending Move Higher; Income Outlook Remains Weak → nyfed.org/sce Households report improvement in labor market and spending expectations, as well as less pessimistic views about their own financial situations in the year ahead, according to the September 2020 Survey of Consumer Expectations. Home price growth expectations returned to their pre-COVID-19 levels, and debt delinquency expectations remained low. In contrast, year-ahead household income expectations remain weak compared with the pre-COVID-19 period. The median inflation expectation remained unchanged at 3.0 percent at the short-term horizon, while it declined 0.3 percentage point to 2.7 percent at the medium-term horizon.
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