Back to Reality: Affluent Household Outlook Drops in December


The Spectrem Affluent Household Outlook has see-sawed throughout much of 2014—up one month, down the next, and December was no exception. After reaching its highest reading in more than seven years last month, the Affluent Household Outlook fell 4.4 points to 26.

Year-to-year, the Spectrem Affluent Household Outlook, a monthly measure of Affluent investor confidence in four financial factors that impact their daily lives, is up 12.28 points.

The Economy posted the largest drop from November. It fell 18.80 points to 12.20. This is still an improvement over the same period in 2013 when the Economy reading was 5.91 points.

Drops in Company Health and Household Assets were more modest, less than one point and 3.2 points, respectively. Household Income was the lone Affluent Household Outlook component to post an increase this month, 5.20 points to 27.60, a three-month high.

Spectrem Group further breaks down Outlook measurement by Millionaire and non-Millionaire households. The Millionaire Household Outlook dropped 5.72 points to 28.68, up 14.25 points from December 2013. The Economy plummeted 18.17 points to 17.83, while Household Assets dropped 10.44 points to 51.16 and Company Health dipped 2.85 points to 13.95. Household Income, though, surged 8.58 points to 31.78, a seven-month high.

The typically more cautious mindset of non-Millionaire households is indicated by an Outlook that is 5.54 points less than their Millionaire counterparts. The Economy dropped 19.79 points to 6.61. That was enough to weigh down the non-Millionaire Outlook, which actually posted modest gains in the other three categories.

Household Income inched up 1.54 points to 23.14, a three-month high, while Household Assets gained 4.40 points to 51.24. Company Health ticked upward 1.17 points to 11.57.


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