"Affluent consumers have kept the consumer economy afloat"

[UpInArms]

http://www.reuters.com/article/domesticNews/idUSTRE4914H820081002?sp=true

NEW YORK (Reuters) - Affluent and wealthy Americans plan to tighten their purse strings a little this holiday season amid concerns about the financial crisis and worries they could run out of money, a poll showed on Thursday.

Although the American Express Publishing/Harrison Group poll found nearly 80 percent of people earning more than $100,000 plan to spend the same or more on gifts, it forecast a 6 percent drop in total gift spending by that group.

The September 19-23 Internet survey of 614 people representing affluent consumers, who make up 10 percent of American families, estimated total holiday gift spending by that group would be about $22 billion.

"What makes the survey a source of concern is that this top 10 percent represents over 50 percent of all retail spending," Jim Taylor, vice chairman of Harrison Group, a Connecticut-based marketing and research consulting firm, said in a statement.

"It is affluent consumers who have kept the consumer economy afloat and whose purchasing is critical to the coming holiday season," he said.

The poll showed three quarters believe the United States is in a recession and 60 percent believe it will last longer than a year. Two thirds are also worried they could "at some point run out of money," up from 45 percent in April.

<snip>

"Instead of buying the same number of designer gowns or handbags or bracelets, they will buy gifts of greater meaning, but fewer in each category," David said. "This will have an effect at the cash register, but it is an effect mitigated by an increasing desire to live a good life, where the good life includes a healthy mix of values-based shopping and giving."

...more...

I guess that 90% of America is just plain not even represented.

[MercutioATC]

1. I've definitely cut back...and will continue to do so.

I don't know that $100k+ makes one "affluent", but I do fall into that category and I'm doing some belt-tightening.

[sandnsea]

2. Top 20%

Yes, I'd say that makes you affluent. Which doesn't matter to me except for the fact that you're affluent and don't know it.

http://www.census.gov/hhes/www/income/histinc/h01ar.html

[onlyadream]

3. 100k = affluent really depends on where you live...

100k in one part of the country really goes a lot farther than in another part. Where I live, a family of 4 needs at least 150k to be comfy. We make over 100k, but we drive 12 year old cars and live in a 1800 sqft house and still struggle. :(

[sandnsea]

4. Top 20% of the wealthiest country in the world

is affluent. Period. If you feel sorry for yourself, why don't you take a walk to where the grocery clerks and other minimum wage workers in your town live.

[onlyadream]

5. Can't argue the stats...

but my counter tops ain't granite, my kid was the only kid in class NOT to have visited Disney, etc. etc. Not to belabor the point, but it does depend on where you live. I have good friends who've had to leave Long Island b/c they couldn't make the required 100k. The town I live in is the one where everyone shakes their head and asks, "why there?" So, I'm not in the cream of the crop as far as area goes; my taxes are $9k for an 1800sq ft house. Please do not tell me that I'm affluent. If it weren't for my aged parents, I would be outa here. Also, when I watch those house programs and see how the people in the midwest or southern states live, I just give a BIG ol sigh of envy. Long Island sucks, its congested, poorly planned and to go anywhere you have to go thru the city and over 2 bridges or tunnels.

p.s. that's why when they do stats like that, they should take into account the cost of living per area - or maybe go by how much the family has for spending money at the end of each month.