America's wealthiest consumers, in the wake of turmoil in the real estate and banking industries, are curtailing their spending on luxury goods and services, according to new research released Thursday by American Express Publishing and Harrison Group.
However, the findings showed, travel is not where the wealthy are cutting; in fact, spending on travel is trending up. Instead, the affluent are cutting or intend to cut outlays on jewelry, fashion, accessories and other personal items.
The research results are a quarterly update on an original survey, The Annual Survey of Affluence and Wealth in America, conducted last December and with previous updates released in April and July. The latest statistics were gathered Sept. 19 to 23, just before the Wall Street meltdown of last week.
Survey respondents in each case represent the wealthiest 10% of American households. This September, seven out of 10 (71%) said the recent financial turmoil has affected the value of their assets and their feelings of financial security. Six of 10 said they were worried about running out of money.
In addition, three-quarters said the country is in a recession and most of the remainder are merely waiting for an official declaration to that effect. Sixty percent believe it will last more than a year, up from 55% who said that in June.
As they focus on their spending, the affluent seem less willing to give up luxury items when they benefit the family, the researchers said, and that is where travel fits in. The other spending items that are trending upward are cars, children's clothing and home decor, the researchers said.
The Harrison Group is a marketing and strategic research consulting firm based in Waterbury, Conn.