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  • Digg it UP - Affluent Turn Cautious in Outlook for Personal Spending and the Economy

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    ecession) that dominated the news media in September, when the survey was conducted.

    The affluent are far less positive than they were six months ago, continuing a decline that be

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    The Affluent Market Tracking Study #8, the just released Fall 2005 report in a continuing series of twice-yearly surveys by The American Affluence Research Center (AARC), reveals several important changes in the 12- month economic outlook and spending plans of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy.

    While the affluent still have a somewhat positive outlook toward current business conditions, their outlook for future economic conditions is now neutral. This may reflect concern about the potential negative economic consequences of the Gulf coast hurricanes (risk of increased inflation, higher interest rates, and a recession) that dominated the news media in September, when the survey was conducted.

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    l important changes in the 12- month economic outlook and spending plans of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy.

    While the affluent still have a somewhat positive outlook toward current business conditions, their outlook for future economic conditions is now neutral. This may reflect concern about the potential negative economic consequences of the Gulf coast hurricanes (risk of increased inflation, higher interest rates, and a recession) that dominated the news media in September, when the survey was conducted.

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    spending and a third of the total US economy.

    While the affluent still have a somewhat positive outlook toward current business conditions, their outlook for future economic conditions is now neutral. This may reflect concern about the potential negative economic consequences of the Gulf coast hurricanes (risk of increased inflation, higher interest rates, and a recession) that dominated the news media in September, when the survey was conducted.

    The affluent are far less positive than they were six months ago, continuing a decline that be

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    ions is now neutral. This may reflect concern about the potential negative economic consequences of the Gulf coast hurricanes (risk of increased inflation, higher interest rates, and a recession) that dominated the news media in September, when the survey was conducted.

    The affluent are far less positive than they were six months ago, continuing a decline that be

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    ecession) that dominated the news media in September, when the survey was conducted.

    The affluent are far less positive than they were six months ago, continuing a decline that began in Spring 2004 after reaching a record high in the Fall 2003 survey. The composite Affluent Consumer Expectations (ACE) index for economic conditions 12 months from now had set a record low this past spring at 116 and has now dropped further to the neutral level of 100.

    The affluent also indicated modest declines in their plans for major purchases and their expected changes in spending for 17 different products and services. Their projected $57 billion in expenditures for holiday gifts (25% of the estimated total holiday gift market) is 1.6% below 2004 spending levels. This contrasts with a 5% increase projected in an early October survey of the total adult population for the National Retail Federation.

    There is some i

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