NY Fed: Consumers’ outlook turns less optimistic

"Results from the September 2017 Survey of Consumer Expectations show increased pessimism. In particular, expectations about earnings, spending, income growth, home prices, financial situations and the stock market all deteriorated," the Federal Reserve Bank of New York announced on Tuesday.

Key takeaways:

• Inflation expectations at the three-year horizon increased, while one-year ahead inflation expectations remained unchanged.
• The one-year ahead median inflation expectations stayed at 2.5%, while the three-year ahead median inflation expectations increased 0.2 percentage points to 2.8% in September. 
• The median one-year ahead expected gasoline price change increased from 4.1% in August to 4.7%.
• Median one-year ahead earnings growth expectations decreased 0.2 percentage point to 2.3% in September. This is the second consecutive drop since reaching 2.6% in July 2017.
• Mean unemployment expectations (the mean probability that the U.S. unemployment rate will be higher one year from now) increased 0.3 percentage points to 35.7% in September.
• Median expected household income growth fell sharply from 2.7% in August to 2.2%, the lowest level recorded since February 2014 and well below the series high of 3.0% in July 2017.