August economic news, both domestic and international, did little to bolster confidence.
The Spectrem Affluent Household Outlook plunged in August from 16.02 points to 0.70 a six-month low.
The Outlook is Spectrem’s Millionaire Corner’s monthly survey of Affluent attitudes toward four financial factors that impact their daily lives. August economic news, both domestic and international, did little to bolster confidence. The July jobs report, which was released at the beginning of the month, failed to meet analyst expectations. Violence in Egypt and Syria erupted, throwing that region into further turmoil. In the week ending Aug. 16, the stock market suffered a three-day losing streak in its worst week of the year.
Not surprisingly, Affluent confidence in the Economy dropped 25.27 points to -8.13, its lowest reading since December 2012, and the biggest month-to-month plunge in 10 months.
Household Income plummeted 16.02 points to -0.80, another six-month low. Company Health dropped 8.16 points to -1.97, a five-month low, while Household Assets dipped 1.83 points to 13.83, yet another six-month low.
Our monthly survey of Affluent investors further breaks down attitudes by Millionaire and Non-Millionaire households. The Non-Millionaire Outlook suffered an 18.10-point drop to -9.54 points, the first time since February it was in negative territory. The Economy took a 31.60-point hit to -16.12, an eight-month low. Household Income fell 21.77 points to -7.84, a six-month low, while Company Health to its own six-month low, dropping 13.18 points to -7.62. Household Assets declined 5.87 points to -6.58.
This is the first time in six months that the Non-Millionaire Outlook and each of its components posted negative readings.
The Millionaire Outlook was more optimistic, but it, too, suffered mostly month-to-month declines. The overall Millionaire Outlook fell 7.71 points to 10.51, a five-month low. Confidence in the Economy dropped 19.22 points to -0.52, while Household Income fell 10.52 points to 5.90. Company Health dipped 3.38 points to 3.40, but Household Assets gained 2.28 points to 33.27, a three-month high.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.