Survey Finds 48% of Americans Report Worse Finances Than a Year Ago
A New York Fed survey shows the share of households reporting worse finances reached its highest level since January 2023. Consumers also expressed lower expectations for future improvement and rising concern about job security.
marketwatch.comRoughly 48 percent of Americans said their financial situation was worse in May than a year earlier, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations. The share expecting their finances to improve over the next year fell to its lowest level since October 2022.
The survey was conducted amid an inflation spike tied to the Iran war and higher oil and gas prices. The May Consumer Price Index, due Wednesday, is projected to show a 4.2 percent annual pace, the highest in three years. About 15 percent of respondents said they expect to lose their jobs within the next year, half a percentage point above the 12-month average.
Wages rose 3.4 percent in May while inflation the prior month reached an annualized 3.8 percent. Three-quarters of Americans said their wages are not keeping up with inflation. Credit card delinquencies reached their highest level since 2011, the New York Fed reported earlier.
