The US households’ expectations about year-ahead earnings growth and the likelihood of finding a job increased sharply in July.
- The US short-term inflation expectations remained unchanged as the medium-term inflation expectations edged upwards.
- The median inflation uncertainty dropped slightly at the short-term and medium-term horizons, surpassing the pre-COVID-19 levels.
- Home price growth expectations decreased slightly to 6.0% from 6.2% in June, driven by respondents aged 40 years and above living in the West and Midwest.
- US expectations about year-ahead price changes for food products remained flat at 7.1%, rent and medical care prices increased by 0.1%, and college education costs increased by 0.5%.
- The expected earnings growth rose by 0.3% in July to 2.9%, its 4th consecutive jump and a new series high, backed by respondents with more than a high school degree and incomes under $50,000.
Forecasts about future credit availability improved slightly, with more respondents in July expecting it to be easier to get credit in the year ahead.
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Source: The Federal Reserve of New York
