U.S. consumers set higher inflation, labor market outlook
Consumers in the United States were optimistic to see an economic expansion next year. More so, they had set higher forecasts for inflation, home prices, earnings, and employment in May, a monthly survey by the Federal Reserve of New York showed.
A gauge of consumer confidence showed a 4% uptick, rising for seven consecutive months ended May. The reading came larger than the 3.4% acceleration seen in April, securing a new peak for the series that began in 2013.
As for the unemployment rate, consumers were confident that it would drop to a record low of 31.9%, easing from a 34.6% record seen in April. In addition to this, expectations for inflation over the next three years were set at 3.6%. The labor market was also expected to stage a rebound as businesses, travel, and hiring gained tighter momentum.