Unity Marketing: Affluent Consumer Confidence Drops
STEVENS, Pa.-Consumer confidence among the country's wealthiest shoppers dropped significantly in the second quarter, according to Unity Marketing's recent Luxury Consumption Index.
The index dropped nearly 18 points to 66 points, which stands close to the level attained at the onset of the Great Recession in 2007.
"Consumer confidence among the affluent - the economy's heavy lifter segment which accounts for only 20 percent of households, but over 40 percent of spending - has fallen sharply since the beginning of 2011," said Pam Danziger, president of Unity Marketing. "Not since the middle of 2009 has it been so low."
Corresponding to the decline in luxury consumer confidence, the average amount spent by affluent consumers on luxury goods and services in the second quarter 2011 declined by 8.4 percent from the first quarter and dropped 18.4 percent over the same quarter last year, according to Unity Marketing.
The market research firm defines affluent luxury consumers as possessing an average income of approximately $300,000 and a median net wealth of $856,000.