Affluent Americans Remain Cautious Amid Economic Concerns

Strategic Insights -

Consumer confidence among wealthy Americans has reached its highest level in over a year, with 56% of high-net-worth individuals citing the economy as the defining issue of the 2004 presidential election campaign. However, despite increased spending on investments, affluent consumers remain hesitant to spend and invest, with only 29% planning to increase stock market investments in the next three months. The survey, conducted by McDonald Financial, reveals widespread concerns about the economy, including a perceived property bubble and a ballooning US deficit.

Key Takeaways:

  • 56% of Americans with a personal annual income of at least $150,000 or investable assets of $500,000 say the economy would be the defining issue of the 2004 presidential election campaign.
  • Only 32% say foreign affairs would be the biggest issue.
  • The survey's latest consumer confidence index is 56, up 7 points (14%) from 49 in October, and the highest since the survey began in January 2003.
  • Only just over half (53%) of respondents said they had spent more during the recent holiday spending period.
  • 45% said they had spent less.
  • 70% said the value of their stock market investments had increased in the past quarter.
  • Only 29% said they would increase stock market investments in the next three months.
  • Affluent Americans continue to have concerns about the economy, with 50% thinking there is a property bubble.
  • Four-fifths of respondents were either "very concerned" or "somewhat concerned" about the ballooning US deficit.
  • 59% said reducing the deficit should be the economic focus in the presidential elections.

Statistics:

  • 56% of high-net-worth individuals cite the economy as the defining issue of the 2004 presidential election campaign.
  • The survey's latest consumer confidence index is 56, a 14% increase from 49 in October.
  • 53% of respondents said they had spent more during the recent holiday spending period.
  • 45% said they had spent less.
  • 70% said the value of their stock market investments had increased in the past quarter.
  • Only 29% said they would increase stock market investments in the next three months.
  • 59% of respondents said reducing the deficit should be the economic focus in the presidential elections.

Sources:

  • McDonald Financial, quarterly survey
  • Keycorp, financial services group