Americans were more upbeat on their earnings growth last month, mirroring a sharp rise in U.S. jobs growth, while inflation expectations remained subdued, according to a new survey.
The Federal Reserve Bank of New York survey published on Monday showed survey of consumer expectations showed median expected earnings growth recovered to 2.54% in June, the highest level in a year. In May the expectation was 2.2%, among the lowest readings since the survey began in mid-2013.
The data could come as a relief for the Fed, which has put interest rate hikes on hold in part because of sharply lower jobs growth in May and April. But figures out last Friday showed that non-farm payrolls shot back up in June, suggesting the U.S. economy regained speed after a brief lull.
The Fed, however, still wants to insure that price measures are not slipping before hiking rates again..
The New York Fed`s internet-based survey questions some 1,200 household heads.
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