Affluent Americans feel more confident about the state of the economy, according to the McDonald Financial Group Affluent Consumer Confidence Index, a quarterly measure of market sentiment among individuals with a personal annual income of $150,000 or more or investable assets of $500,000 or more. The Index stood at 55 out of 100 in January, a 15 percent increase since the Index was last reported in October 2004. The Index is nearly unchanged from one year ago, when affluent consumer confidence scored 56.
With their confidence on the rise, affluent Americans say they plan to increase their spending and investing levels over the next quarter. Approximately 10 percent of respondents have plans to purchase a second home in the next three months, while nearly 21 percent intend to make home improvements.
Even with their positive outlook, affluent Americans still remain concerned about the economy due to issues such as Iraq, the national deficit and rising interest rates. Approximately 34 percent of respondents are concerned that rising interest rates will cause a significant drop in housing prices.
Posted by gandlwoods at February 7, 2005 08:49 AM