Households Less Optimistic About Finances

Many households say their financial outlook is worse than it was a year ago, according to a recent Federal Reserve Bank of New York survey.

A man stares worriedly at his computer.
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Households are less optimistic about their current financial situation and expectations for the future compared to one year ago, according to the August 2023 Survey of Consumer Expectations, from the Federal Reserve Bank of New York’s Center for Microeconomic Data. The general outlook about current credit conditions and expectations about future conditions also both deteriorated. 

Households reported that it is harder to qualify for credit than one year ago and expected it will be harder to obtain credit in the year ahead. The possibility of missing a debt payment over the next three months dropped by about 0.5% to 11.1%. But over the next year, households only expect their earnings to grow by 0.1% to 2.9%, a number that has remained relatively stable since September 2021. 

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Kathryn Pomroy
Contributor

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.