Consumers Report Stable Inflation Expectations, Lower Spending Growth Expectations

By: Mike Shedlock | Mon, Feb 9, 2015
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Results from the January 2015 Survey of Consumer Expectations (SCE) indicate median consumer inflation expectations were largely unchanged at both the one-year and three-year ahead horizons at 2.9 percent and 3 percent, respectively.

Median household spending growth expectations retreated significantly from the last month.

The mean perceived probability of finding a job in the next three months (if one were to lose one's current job) continued to increase.


Inflation Expectation Projection

Inflation Expectation Projection


Earnings Growth Expectations

Earnings Growth Expectations


Income Growth Expectation

Income Growth Expectation

I could not locate the chart of spending expectations and that was the chart I was most interested in. The Fed does allow a data download so here is the chart I created in Excel.


Spending

Spending

I do not place a lot of faith in such projections actually, especially inflation expectations that I find totally useless.

In regards to spending, if consumers really do slow spending, it will be yet another knock on the 1st quarter 2015 GDP report.

 


GDP Trends

For more on 1st quarter GDP, please see ...

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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