Survey: Americans Growing More Worried About Household Finances

The survey found that consumers expect prices to continue rising over the next year, though not at a faster pace than previously anticipated.

By Levi Gwaltney for Las Cruces Digest
Source: Federal Reserve Bank of New York

Americans are becoming less optimistic about their financial futures, according to a new survey released by the Federal Reserve Bank of New York.

The May 2026 Survey of Consumer Expectations found that while inflation expectations remained relatively stable, concerns about jobs, credit access and household finances increased. More respondents reported that their financial situation had worsened over the past year, while expectations for the year ahead also became more pessimistic.

The survey found that consumers expect prices to continue rising over the next year, though not at a faster pace than previously anticipated. Americans expect inflation to average 3.5 percent over the next year, while expectations for inflation three and five years into the future remained unchanged.

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Jobs Outlook Softens

The survey showed growing concern about the labor market.

Respondents reported a higher likelihood of losing their jobs during the next year and a lower likelihood of finding a new job if they became unemployed. The perceived chance of finding a new job fell to its lowest level since late 2025.

At the same time, more workers said they expect to voluntarily leave their current jobs, a sign that some workers may continue seeking better opportunities despite growing uncertainty.

Credit and Debt Concerns Rise

Consumers also reported increasing concerns about borrowing money and managing debt.

The share of households expecting credit to become easier to obtain declined, while the perceived likelihood of missing a minimum debt payment increased. Concerns were especially pronounced among lower-income households and those with less formal education.

Respondents also expressed a more negative view of their current financial condition compared to a year ago. The share of households expecting their finances to improve over the next year fell to its lowest level since 2022.

Housing and Everyday Costs

While inflation expectations remained steady overall, respondents expect several household expenses to continue rising.

Expected rent increases climbed to 7.4 percent, while food prices are expected to rise 5.8 percent over the next year. Home price expectations also increased, reaching their highest level since 2022.

Gasoline prices were one of the few categories where expectations improved slightly.

What It Means

The survey suggests that Americans are becoming less concerned about a return to extremely high inflation but more concerned about their own financial stability.

In short, households appear to be shifting from worrying primarily about rising prices to worrying about jobs, debt, access to credit and their overall financial outlook.