As President Donald Trump's trade war with China drags on and the global economy slows, U.S. consumers are dialing back their expectations for future financial success, a new survey showed.
The Federal Reserve Bank of New York's Survey of Consumer Expectations released Monday shows consumers in August saw a higher perceived probability of losing their jobs, and they are reducing expectations for home prices, income and earnings from savings accounts.
Households are also starting to reduce their spending plans -- a key indicator since consumer expenditures account for about 70% of gross domestic product, the broadest gauge of economic activity.
"Expectations about employment, growth in earnings, spending, income and household financial situation were generally less optimistic," according to a press release from the New York Fed.
Investors are scrutinizing economic data for signs of whether growth is stabilizing as the Federal Reserve cuts U.S. interest rates to offset negative spillovers from a slowdown in foreign countries like China and Germany, and as domestic manufacturers scramble to adjust to higher tariffs in the trade spat.
A government report on Friday revealed surprisingly weak jobs growth in the U.S. last month, and recent surveys increasingly show confidence waning among investors, businesses and consumers alike.
On average, consumers assessed the odds that they would lose their jobs in the next 12 months at 14.2%, up from 13.8% in July.
And households reduced their predictions of future income growth to 2.7% from 2.9% in July.
Household spending-growth expectations slipped by 0.1 a percentage point to 3.2%.
And in a potential negative indicator for banks like JPMorgan Chase (JPM - Get Report) and Bank of America (BAC - Get Report) , the average perceived probability of missing a minimum debt payment rose to 11.7% in August, from 11.1% the prior month.