A recent survey by the Federal Reserve Bank of New York tells us that most Americans feel good about the economy in the next year. The survey, shared on Monday, shows that people think prices will not go up too much, jobs will be available, and they plan to spend more money than before the pandemic.
Highlights from October Survey
In October, the Survey of Consumer Expectations showed that people are more confident about paying their bills. The chance of missing a payment dropped to 11.99%, which is like the numbers we saw before the pandemic.
Thoughts on Prices Going Up
People also think that prices will not go up much in the short term (one year) or the long term (five years). Even though some people expect prices to go up in the next three years, overall, they are not too worried.
Why We Care About Prices
The Federal Reserve, like a money superhero, watches closely to see what people think about prices. If people believe prices will go up, they might spend more money. This could make businesses increase prices too. Lately, some people at the Federal Reserve are worried that more people might start thinking prices will go up a lot.
What People Expect for Pay and Jobs
People expect their pay to increase a little less, but they are still hopeful. The chance of losing a job went up a bit, but people also believe there will be more jobs available.
Money for Families and Spending Plans
People think the money their family makes will increase, which is good news. They also plan to spend more money, even though it’s a bit less than before. This means people want to buy more things and help the economy.
Feelings About Money Now and Later
Many people said their families are doing better than last year. However, when they think about next year, some feel they might do better, while others think things could stay the same or get a bit worse.
The Bottom Line: Happy Thoughts for Americans
Even though there are some challenges, the survey shows that Americans are mostly feeling good about money for the next year. This happy feeling might help the economy by making people spend more money and help everyone get back on their feet.