The Spectrem Household Outlook, which is designed to measure an investor’s optimism about four financial components in their daily lives, reached a 13-month low in July, as investors registered their reaction to a long series of international economic and political events.
The Household Outlook for all investors in July came in at 22.90, the lowest such ranking since June of 2017, when it came in at 19.50. Since that time, the Outlook among all investors climbed to 39.90 in January of 2018, but has reported decreases in three of the last four months.
The falling Outlook in July was due entirely to a decrease in Outlook among Millionaires, whose Outlook came in at 25.40, a drop of almost five points from June. The Outlook among non-Millionaires actually rose in July to 20.36.
Among the four components which make up the Outlook, investors overall reported an improvement in Household Income, but Household Assets, Company Health and the Economy all reported drops. However, among non-Millionaires, Company Health and the Economy each recorded improvements, and the Outlook for the Economy among non-Millionaires climbed out of negative territory after a drop of 25 points in June.
Here is a look at the outlook regarding each component:
8.40, down 2.4 points from 10.80 in June of 2018.
- There continues to be positive indicators for the economy in general, but investors are not convinced, or are worried how the tariffs and trade wars will affect the economy in the future. The overall Outlook for the Economy is the lowest since August 2017, and is in stark contrast to the mark of 43.60 measured in January.
- Among Millionaires, the rating for the Economy dropped to 12.70. Non-Millionaires pulled their Outlook for the Economy out of negative territory but it still remains low at 4.03.
- Among investors aligned with the Democratic Party, the rating for the Economy fell 20 points to -37.14.
48.13, down more than 1 point from 49.20 in June of 2018.
- Not much movement among investors in this category, which was up to 63.60 in January but has been sitting in the 40s for the past three months. The number is recovering from a very low report in April.
- There was no reported improvement in Household Assets among any of the segments of investors surveyed in the Spectrem Outlook.
21.60, an increase of almost 3 points from 18.80 in June of 2018.
- The only factor to see an increase, Household Income rose for both Millionaires and non-Millionaires, and was up five points for the non-Millionaire segments.
- Male investors reported the highest increase in their Outlook for Household Income, a seven-point increase to the highest level since March. Working investors, however, reported an almost five-point drop in Outlook over Income in July.
15.20, more than four points lower than 19.60 in June of 2018.
- There is a great deal of conversation going on about how trade wars are affecting American companies, and the Company Health Outlook may reflect the effect of those conversations. Company Health was up to 26.60 in January but has been below 20 for most of the year.
- The Outlook for Company Health fell more than 7.5 points among Millionaires, with a similar drop among working investors.
©2018 Spectrem Group