U.S. consumers expect to spend more in year ahead: NY Fed

• U.S. consumers expect to increase household spending over the next year, with the median expected growth rising sharply to 3.0%, according to the New York Fed's December 2020 Survey of Consumer Expectations Household Spending Survey.
• That's up from 2.2% in August 2020 and 2.4% in December 2019. The increase was broad based across education and income groups.
• As for consumers' recent experience, the median increase in monthly household spending was 1.6% in the most recent survey, down from 1.9% in August and 2.5% in December 2019. The decline from August was driven by respondents aged 40 to 60 and by lower income (below $50K) respondents.
• Relative to December 2019 levels, median year-ahead expected spending growth in clothing, food, utilities, recreation and transportation rose in December 2020, while those for education, housing, and medical care declined.
• Median expected household spending  on essential items, such as daily living expenses, increased to 4.1% in December 2020, a series high, from 3.5% in August and 3.0% in December 2019.
• Median expected change in spending on non-essential items, such as hobbies, leisure, or vacation, over the next year also increased to 1.6% (another series high), from 1.0% in August and 1.4% in December 2019.