Interestingly, the survey indicated a rise in the disagreement among respondents regarding inflation forecasts, especially for the one-year and five-year ahead horizons, while it decreased for the three-year horizon. Additionally, there was a slight increase in median inflation uncertainty across all three horizons, suggesting growing unease about future inflation outcomes.
In terms of labour market expectations, median one-year ahead expected earnings growth saw an uptick, rising by 0.3 percentage points to 2.8 per cent, mainly driven by older respondents and those without a college degree. This return to the previously observed range between 2.8 per cent and 3 per cent suggests a cautious optimism about income prospects, as per the survey.
Conversely, the mean unemployment expectations rose marginally to 37.2 per cent from 37 per cent, remaining below the series' 12-month trailing average. The perceived risk of job loss in the next 12 months decreased significantly, aligning with a reduced likelihood of voluntarily leaving one's job. Additionally, the confidence in finding a new job if one lost their current position dropped to its lowest level since June 2021.
ALCHEMPro News Desk (DP)
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