That sound you hear is the Spectrem Household Outlook rebounding from its depressing attitude in June to a more optimistic view in July.
Investor confidence jumped in July among all investors from the June low of 19.50, the lowest point since October of 2016, to a more normal rating of 25.00, the highest ranking in three months. The Outlook improved among both Millionaires (from 21.29 to 26.92) and non-Millionaires (from 17.62 to 22.43).
The Outlook is comprised of investor rankings of four financial components in their lives, and almost all component ratings rose in July, among both Millionaires and non-Millionaires.
Here is a look at each component:
47.60, down 1.2 points from June 2017, marking the third consecutive monthly decrease.
Household Assets is now lower than it has been since February. It is the component most likely to see significant bounce from month to month. But among non-Millionaires, the Household Assets rating has been above 40.00 for five months straight and for Millionaires, it has been above 50.00 for four months in a row.
This is also the component that sees near-identical numbers between Republicans (45.92) and Democrats (45.71).
29.20, up 11.20 points from June 2017, reaching its highest point since February of 2015.
This is the most positive gain among all components overall, indicating a strong belief in the future of a household’s income. Among Millionaires, the 32.17 rating for Household Income was the highest since May of 2014, more than three years ago. Similarly, the 25.23 rating for Household Income among Non-Millionaires was the highest in more than two years.
The Household Income rating was highest among Democrats at 37.14 and lowest among Republicans at 20.41.
20.40, up 10 points from June 2017, which it was at its lowest mark in almost a year.
The Outlook components tend to follow a pattern in which Millionaires have a greater optimism than non-Millionaires, but for the Economy in July, non-Millionaires rated it at 11.21, a jump of 12 points, while Millionaires rated the Economy at 9.79, an increase of 8 points from June but still much below the average.
There is a huge disparity between Republican and Democrat investors in rating the Economy, from 47.96 among Republicans to (28.57) among Democrats.
12.80, an increase of 2.0 points from June of 2017, the second consecutive monthly increase.
This corporate outlook is still rebounding from a significant drop in May, and is spurred by greater optimism among Millionaires, who had a very pessimistic rating for Company Health in June, when the Millionaire rating was actually below that of non-Millionaires. Order has been restored in that regard, but female investors rated Company Health slightly higher in July than did male investors, which also is out of the norm.
©2017 Spectrem Group