As prices increase, Americans more pessimistic about finances, new survey shows

NEW YORK - Growing concerns about job security, credit access and household finances are weighing on consumer sentiment, according to the latest Survey of Consumer Expectations released Monday by the Federal Reserve Bank of New York.

The survey, conducted last month, interviewed about 1,300 households. 

Americans worried about financial outlook

By the numbers:

The May 2026 survey showed that Americans are increasingly worried about their personal financial outlook and the health of the labor market.

Home price growth expectations climbed sharply, rising a half percentage point to 3.5%, the highest level recorded since July 2022. The increase was especially pronounced among respondents in the Midwest and West.

Respondents also expected several everyday costs to rise faster over the coming year. Food price growth expectations increased to 5.8%, while expected rent inflation jumped to 7.4%. In contrast, expectations for gasoline prices edged lower to 5.0%, and anticipated increases in medical care and college education costs both moderated.

Confidence in finding new job weakens

Dig deeper:

In addition, workers expressed greater concern about job security. The perceived probability of losing a job within the next year increased to 15.1%, exceeding its recent average.

Meanwhile, confidence in finding new employment also weakened. The average perceived probability of finding a job after losing one's current position fell to 43.7%, the lowest reading since December 2025. 

One notable exception was worker mobility. The expected probability of voluntarily leaving a job surged to 20.8%, its highest level since February 2023.

The survey also highlighted growing financial strains among households.

Expectations for future credit availability deteriorated, with fewer respondents believing it will become easier to obtain credit over the next year. The perceived likelihood of missing a minimum debt payment within the next three months rose to 12.6%, driven largely by lower-income households and those with lower educational attainment.

Consumers reported a worsening view of their current financial condition compared with a year ago. The share of households describing their finances as worse than a year earlier reached its highest level since January 2023. Expectations for the year ahead also weakened, with the balance of respondents expecting improvement versus deterioration falling to its lowest level since October 2022.

Despite concerns about finances and employment, consumers were somewhat more optimistic about financial markets. The perceived probability that U.S. stock prices will be higher one year from now increased slightly (0.4 percentage points) to 38.0%.

Record number of Americans say ‘financial outlook’ is getting worse

Big picture view:

These findings come as rising living costs in the U.S. continue to dominate economic concerns.

RELATED: Record number of Americans say their financial outlook is ‘getting worse’

In a separate April poll, a record share of Americans said their financial situation was getting worse.

In an open-ended question, 31% of respondents cited "high cost of living" as the most important financial problem facing families.

While this was below the 41% peak in 2024, this year’s data was similar to a year ago and among the highest in Gallup’s more than 20-year trend.

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