U.S. consumers' expectations deteriorated sharply in April: New York Fed Survey

(Reuters) - In a month when Americans in most states were being asked to stay home because of the coronavirus pandemic, U.S.

Reuters May 12, 2020 01:05:23 IST
U.S. consumers' expectations deteriorated sharply in April: New York Fed Survey

US consumers expectations deteriorated sharply in April New York Fed Survey

(Reuters) - In a month when Americans in most states were being asked to stay home because of the coronavirus pandemic, U.S. consumers became more fearful about losing their jobs and more pessimistic about their ability to access credit or pay their bills, according to a survey released on Monday by the New York Federal Reserve.

Consumers' perceived chances of losing their jobs rose to the highest level seen since the survey launched in 2013. Their expectations of how much they would earn and spend dropped to a series low. Inflation expectations increased only slightly for the next year and three years, but there was more uncertainty about the forecasts.

As millions of Americans lost their jobs, they became more pessimistic about the hit their finances would take during the downturn - and worried about facing long spells of unemployment.

Workers said there was a 20.9% chance, on average, that they could lose their job in the next 12 months, an increase of 2.4 percentage points from the month before. The perceived chances of finding a new job in the next three months, after becoming unemployed, dropped 6.1 percentage points to 47.0% in April - the largest monthly decline since the launch of the survey.

Nearly four in 10 respondents said they are worse off today financially than they were a year ago, up from 30% in March and compared to 15% a year ago.

The survey of consumer expectations is a monthly poll based on a rotating panel of 1,300 households.

Expectations for inflation over the next year and the next three years, usually one of the main focuses of the survey, increased slightly to 2.6%.

Consumers also worried the downturn could affect the housing market. For the first time since the survey was launched in 2013, the median respondent did not expect home prices to increase over the next year. Some 44% of respondents said they expect home prices to decline over the next 12 months.

(Reporting by Jonnelle Marte; Editing by Andrea Ricci)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.