High Earners Spending Less, Says Study

[dkf]

Economic jitters have caused Americans of all income groups to reduce spending. Bankrate’s “Financial Security Index” shows two out of five consumers slashed spending in the past 60 days.

That’s not too surprising, given the recent string of bad disappointing economic news. “The hub on the wheel is job growth,” says Greg McBride, senior financial analyst at Bankrate.com. “The lack of job growth weighs on everyone’s confidence level, even those who are working,” he says.

What was surprising, says McBride: Spending reductions were apparent across all income groups — even high-income households. In fact, 37% of households earning $75,000 or more admitted to cutting back.

“One of the contrasts we’ve seen throughout the year is that higher-income households have actually been bucking the trend,” McBride says. “They’ve very consistently voiced a feeling of improving financial security throughout 2011 — so to see a cutback in spending even encompass the higher income level ratchets up the level of economic concern,” he says.

http://moneywatch.bnet.com/saving-money/blog/so-money/high-earners-spending-less-says-study/2685/

[taught_me_patience]

1. How is it that "high-income" threshold is only $75k

They ought to split that up a bit, and I think the findings will be quite different.

[TBF]

3. This OP posts right-wing garbage day after day ...

Go ahead and do a search and check out the posts.

[DaveJ]

4. I see financial posts

Don't see how they are right wing. :shrug:

[dkf]

5. I can't find the raw data.

I would be very interested in seeing it broken down further.

[TBF]

2. 37% of households earning $75,000 or more admitted to cutting back -

of course households at $75K are cutting back. I'd like to see stats showing how much "cutting back" is going on above $500K.

It's the tale of 2 classes -


Luxury spending picks up even as economy sputters
Tiffany jewelry, boats and custom choppers are selling just fine
Jaclyn Trop/ The Detroit News
Last Updated: September 17. 2011 1:00AM

Spending on luxury items is picking up among certain Michigan companies, underscoring the gap between the rich and poor as uncertainty lingers about the economy here and nationwide.

The purchases, especially on lavish motorcycles, boats and airplanes, reflect a national trend of increased luxury spending by well-to-do consumers this year, even as economists have lowered their estimates about how the overall economy will grow for the rest of the year.

Wealthy consumers in the Great Lakes State and around the country are seeking Michigan-based custom builders for six-figure motorcycles, $750,000 boats and $1 million airplane interiors for one-of-a-kind rides. The builders say they are seeing fewer customers than before the recession, but that those shoppers are willing to shell out much more money.

More at the link - From The Detroit News: http://detnews.com/article/20110917/BIZ/109170349/Luxury-spending-picks-up-even-as-economy-sputters#ixzz1YV0LiP9E