New York Fed survey: US consumer fears over job prospects rise in October
A New York Federal Reserve survey shows the proportion of consumers expecting higher unemployment in a year hit its highest since April 2020. While involuntary job loss perceptions rose modestly, inflation expectations remained unchanged from September.
The Federal Reserve Bank of New York has released its October consumer expectations survey, showing that the proportion of respondents who expect the unemployment rate to rise in a year has reached its highest level since April 2020, when the economy and job market were in severe turmoil at the onset of the Covid-19 pandemic.
According to the survey, respondents indicated that the likelihood of involuntary job loss increased in October, though it remained at a relatively low level. At the same time, they said the chances of finding a new job after losing one had also increased.
Respondents predicted an inflation rate of 3.9 per cent in one year, 3.3 per cent in three years, and 3 per cent in five years. All three figures were consistent with the results of the September survey.
The survey also showed that compared with September, households' views on their current financial situation had improved slightly, while their expectations for their financial situation one year later remained stable.