Consumers See Moderating Inflation and Brighter Economic Outlook, While Pulling Back Slightly on Credit Applications

• Median consumer inflation perceptions over past 12 months decreased further, while inflation expectations edged up for next 12 months and unchanged for 3 years ahead

• Expectations for nominal income growth next 12 months remained stable, while expectations for nominal spending growth increased marginally

• Expectations for economic growth next 12 months less negative, while expected unemployment rate in 12 months decreased

• Expectations for house price growth next 12 months unchanged, while expectations for mortgage rates 12 months ahead declined

• Share of consumers who applied for credit past 3 months declined to 16.8% in January 2024 from 17.3% in October 2023