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Tuesday, 16th May 2006 (6100 views)

High-earning consumers are continuing to spend more on luxuries and feel optimistic about individual financial status despite lower confidence in the economic strength of the US, a leading indicator has shown.

Unity Marketing established the Luxury Consumption Index in 2003 to chart spending on luxuries from almost 2,000 consumers with an average annual income of almost $146,000, aged 42.7 on average.

The index reflects information collected about purchasing trends in four main categories of luxury goods and services, including home luxuries; personal luxuries (fashion, jewellery and accessories, for example); cars; and experiences.

Almost half of the consumers surveyed said they believed that the country (the US) is worse off now than it was three months ago.

Their individual spending patterns revealed personal confidence, however. All listed luxury categories showed growth in the first quarter.

The Luxury Consumption Index shot 10.4 points ahead at the end of the fourth quarter in 2005, which was unprecedented growth. Luxury consumers' confidence has leaped ahead again in the three months to March 2006, reaching 113.2 points on the index, an increase of 8.4 points.

 

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