The Federal Reserve Bank of New York’s May 2026 Survey of Consumer Expectations shows a mixed but weakening picture of household sentiment. Short-term inflation expectations edged down slightly, while medium- and long-term expectations stayed stable, and expected home price growth rose to its highest level since 2022. At the same time, labor market confidence softened, with higher expectations of layoffs, weaker job-finding prospects, and rising concerns about job security.
Inflation
Household financial outlooks also deteriorated, with worsening perceptions of credit access, increased expectations of missed debt payments, and a weaker view of current and future financial conditions. Spending growth expectations fell modestly, while income growth expectations remained steady.
Household Finance
Overall, the survey points to more cautious household behavior, with growing financial strain and weaker labor market confidence, even as inflation expectations remain relatively anchored.
Labor Market
