Economy Getting Boost from Country's Biggest Spenders, New Survey Shows

(PRWEB) October 22, 2003

The economic recovery now underway will get considerable help from increased spending by America's wealthiest households according to the fourth and latest semi-annual Survey of Affluent Americans ™ conducted by The American Affluence Research Center.

Completed this month, the survey shows that the affluent have become more optimistic about business conditions, the stock market, their own household income, and their ability to save and invest during the next 12 months. Now the country's biggest spenders expect to spend even more for motor vehicles, dining out, entertainment, recreation, travel, and new homes.

Six months ago, as many of the affluent invested for growth as for capital preservation. Today, more than twice as many invest for growth.

The survey focused on the nearly 11 million households that represent the wealthiest 10% of all U.S. households. These households earn 40% of the total income of all Americans and hold 85% of the total value of all publicly traded stock and stock mutual funds.

The survey findings indicate that over the next 12 months these affluent Americans will purchase approximately 4 million motor vehicles; 800,000 newly built homes; over 1 million existing homes; and 2.8 million cruises. Spending for indulgences such as designer apparel, collectibles, jewelry, and fine watches is expected to drop, however.

The survey also shows BMW, Lexus, Mercedes-Benz, Rolex, and Sony to be among the brands most frequently named as representing "the very highest quality". Costco, Home Depot, Nordstrom, Target, and Wal-Mart were among the most frequently named retail outlets that offer the best combination of products, pricing, and service.

Overall, 77% of the affluent said they would contribute $1000 or more to at least one non-profit organization in the next 12 months. Most likely to receive these gifts are religious and educational organizations. Least likely are cultural and environmental groups.

In the past 12 months, 84% of all survey participants used the internet to buy products or services, or to conduct research before making a purchase. Items most likely to be bought over the internet included non-business airline travel and lodging, computers, stocks/bonds/mutual funds, and non-designer apparel.

This survey has a maximum margin of error of five percentage points. The complete 35-page report is available for $295 from AARC.

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