(NEW YORK) — A new economic report identified a “remarkable” rise in food insecurity, potentially explaining gloomy consumer outlooks despite strong economic fundamentals.
The Federal Reserve Bank of New York released a report on Wednesday identifying uncertain access to adequate food and consumer pessimism on the rise in certain vulnerable groups across the country.
The report, which relies on newly collected data from the Survey of Consumer Expectations (SCE), found a “remarkable increase in food insecurity, particularly among lower-educated and lower-income households and households with young children.”
It also identified “a contemporaneous increase in pessimism among the same groups, along with a sharp decline in job-finding expectations.”
The report found that between late 2025 and early 2026, there was an increase in households reporting they had to skip meals, use food banks, rely on SNAP benefits or dip into savings to cover groceries, which are up 2.9% from a year ago, the Bureau of Labor Statistics noted earlier this month.The survey showed that the percentage of those who didn’t have enough food or kids missed a meal more than doubled from June 2020 to early 2026.
More specifically, it found that, of households with income under $50,000 a year, 16% reported not enough food or kids missing meals in late 2025 and 19.7% recorded those circumstances in early 2026. That’s up from just 6.7% in mid 2020.
The survey noted that 40.1% of the same subset of respondents reported dipping into their savings in early 2026 versus 37.8% in late 2025 and 29% in mid-2020.
Among respondents with a high school diploma, the survey found 10.7% had received food donations in mid-2020, compared to 18.8% in late 205 and 20.9% in early 2026.
Food insecurity, the SCE report notes, “is associated with poor health outcomes as well as lower educational attainment, worker productivity, and lifetime earnings.”
The report also highlighted the existence of “solid economic fundamentals,” such as “low unemployment, historically high household net wealth, and resilient consumer spending” despite a growing sense of consumer pessimism, suggesting “a ‘K-shaped’ economy, in which consumption growth in recent years has been driven largely by higher-income and college-educated households while lower-income households have seen fewer gains.”
It says the findings concerning food insecurity are likely a helpful guide to understanding generally low consumer sentiment, despite an economy with “solid economic fundamentals.”
“While not necessarily causal, the observed positive association between food insecurity and overall consumer pessimism, together with the increase in the incidence of food insecurity, especially among households at the bottom of the K-shape, point to a potential explanation for the unusually low recent levels of consumer sentiment at a time when the hard economic data paint a more positive picture,” the report reads.
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