New York Fed: U.S. shoppers suspect spending growth slowdown

The Federal Reserve Bank of New York said on Tuesday that American consumers are anticipating their household spending to inflate more slowly over the next twelve months.

The median forecast yielded an overall 2.3% increase for household spending among U.S. citizens over the next financial year as of December. This is relatively lower from the 2.8% that American consumers anticipated in December 2018 based on the survey figures released by the Federal Reserve Bank of New York.

The survey further projected American consumers’ expected spending on clothing, medical care, food, and housing to grow more slowly in the next 12 months versus their 2018 spending growth rate results.

A 2.5% median surge for monthly household spending was also reflected in the survey in December 2019 compared to the same period of the previous year. The biggest increase in spending reported in the survey came from lower-income households or those who earn lower than $50,000 annually.

The study also revealed an increase in the number of American households that made major purchase in the last quarter, capping a series-high 62.5%. New York Fed’s survey is conducted quarterly.