WASHINGTON — Household financial worries in the United States have climbed to their highest level in several years, according to recent survey data from the Federal Reserve Bank of New York, highlighting growing concern among consumers over their personal economic outlook.
The New York Fed's May Survey of Consumer Expectations, released on Monday, found that the share of households reporting they were “much worse off” financially than a year earlier reached its highest level since July 2022. The survey also showed a rising share of respondents expecting their financial situation to deteriorate further over the next 12 months.
According to the survey, more than four in 10 households said their financial situation was either somewhat or much worse than a year ago, the highest reading since early 2023. The net share of households expecting improvement in their finances over the coming year fell to its lowest level since late 2022, the New York Fed said.
“Year-ahead expectations about households’ financial situation also deteriorated,” the New York Fed said in the survey report.
The findings come as many consumers continue to face elevated living costs. Survey respondents reported expectations for further increases in expenses such as food and housing over the next year, even as broader inflation expectations remained relatively stable.
Other measures have also pointed to persistent financial strain. A Gallup survey published in April found that affordability remained the leading financial concern for American households, with many respondents citing inflation, housing costs and energy expenses as major pressures on family budgets. Gallup reported that a record share of Americans said their financial situation was worsening.
Business surveys have reflected similar concerns. The National Federation of Independent Business said on Tuesday that small-business sentiment declined in May as uncertainty and inflation worries increased.
Despite the rise in household anxiety, some economic indicators have remained relatively stable. The labor market has continued to add jobs, while unemployment has remained low by historical standards, according to recent economic data. However, the New York Fed survey found that confidence in finding new employment after a job loss weakened during May.
As of Friday, policymakers and economists continued to monitor consumer sentiment and inflation trends closely, with household finances remaining a key measure of economic conditions. Further updates are expected as new inflation and consumer confidence data become available in the coming weeks.
