More consumers expect to be able to make their debt payments, according to data released today by the Federal Reserve Bank of New York. The bank released its regular Survey of Consumer Expectations report.
More than 12% of people think they will not be able to make a debt payment a year from now, compared with 13.1% in May and 13.26% a year ago.
The rate decreased for all three age groups tracked by the survey (Under 40, 40-60, and Over 60), but the largest drop was in the Under 40 category, which went from 17.1% in May to 14.7% in June.
When looking at the survey results broken out by income, there is an interesting anomaly. For individuals making less than $50,000 a year or more than $100,000 a year, the likelihood of missing a debt payment decreased, but for the group earning between $50,000 and $100,000, the likelihood increased, to 10.59%, from 9.82% a month ago and 7.91% a year ago.
When breaking the data out by geographic region, all four areas of the country had lower figures in June than in May.
Twice as many people expect to be “much worse off” financially a year from now than they are right now. But at the same time, fewer people expected to be “somewhat worse off.” The number of people who expect to be “much better off” or “somewhat better off” declined from a month ago.
What does the data mean? It seems to indicate that people are becoming more pessimistic about the economy and the impact that it will have on their daily lives, albeit in a minor dose.
