NEW YORK, Feb 9 (Reuters) - Americans’ inflation expectations were stable last month even while their planned spending dropped sharply, according to a Federal Reserve Bank of New York survey.
Median expectations of inflation one and three years into the future were 2.9 percent and 3.0 percent, respectively, according to the New York Fed’s survey of consumer expectations.
On the heels of the holiday shopping season, median household spending growth expectations fell to 4.1 percent in January, from 4.8 percent in December, its lowest level since the survey began in mid-2013. Regionally, only the U.S. Northeast bucked this broad trend.
The U.S. economic recovery has ratcheted down the unemployment rate to 5.7 percent last month. The survey showed workers grew more confident they would find a job within three months if they suddenly became unemployed. (Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)