Consumer expectations improve in June, New York Fed survey says

U.S. consumers' mood about household financial conditions improved in June, but were still less optimistic about earnings growth, income growth and job finding expectations than before the pandemic hit, according to the New York Fed's June 2020 Survey of Consumer Expectations.

The average probability of missing a future minimum debt payment reached a new series low and home price growth expectations increased.

The average perceived probability of missing a minimum debt payment over the next three months fell to 9.8% in June from 12.% in May and 16.2% in April.

Inflation doesn't appear to be a worry. Median inflation expectations at the one-year horizon declined to 2.7% in June from 3.0% in May; for the three-year horizon, it fell to 2.5% in June from 2.6% in May.

Median expected household income growth stayed steady at 2.1% in June but was well below 2.9% a year ago.

And consumers seem to be wary of spending; the median household spending growth expectations decreased 0.1 percentage point to 2.8% in June, well below the year-ago level of 3.3%.