Expectations For Wage Growth Surged In January

The New York Fed is out with the results of the second instalment of its monthly Survey of Consumer Expectations this morning.

The report showed that survey respondents’ expectations for earnings growth over the next year surged in January, as the chart below illustrates.

The New York Fed provides a demographic breakdown of the responses to its survey questions, so we can see who exactly is expecting higher wages over the next year than they were in December.

In fact, the gains were widespread across every demographic group, as the charts below show.

AGE GROUP: Older workers posted the biggest increase in earnings growth expectations in January.

INCOME BRACKET: Those making under $US50,000 recorded the biggest increase in earnings growth expectations in January.

EDUCATION LEVEL: Those with no college experience recorded the biggest increase in earnings growth expectations in January.

REGION: Those in the Northeast recorded the biggest increase in earnings growth expectations in January.

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