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Stevens, PA—Affluent consumers are gaining confidence and spending more, according to the latest Luxury Consumption Index (LCI) a quarterly luxury consumer tracking survey from Unity Marketing. The affluent top 20% of the nation's 121 million households are the country’s biggest spenders, accounting for more than 40% of all consumer spending. The LCI shows their expectations for future spending rose in July, boding well for both the back-to-school and holiday shopping seasons.

This more positive outlook on their financial status corresponded to a 15.9% uptick in spending on luxuries and high-end goods and services over last quarter. Unity Marketing conducted the survey among 1,189 affluent consumers (average income $273.2k) between July 9 and July 15, 2013.

"We have seen plenty of spikes in affluent consumer confidence since 2010, but the latest one at the start of the third quarter 2013 feels different than the others. It has all the markings of a sustainable recovery that will give affluents the confidence to spend more freely through the end of the year," says Pam Danziger, president of Unity Marketing and lead researcher on the quarterly study.

Affluents feel more confident about the financial direction of the country as a whole. Key to an upturn in affluent consumer confidence is growing confidence in the financial direction of the country. 32% of those surveyed believe the United States is better off financially now, as compared to 27% at the start of the second quarter. There also was a noticeable increase in the percentage of respondents that reported spending more on luxury in 2013 vs. the same period last year. 27% indicated they did so, as compared with only 23% who said the same in the last quarter.

"These factors, taken together along with an improved perspective on personal financial status, give a bright prospect for continued spending by these most important consumers,” says Danziger. Not only is their more positive outlook measured in greater spending on high-end and luxury goods and services, the government's Retail Census also shows a strong 3.8% increase in retail and food service revenues for the first five months of 2013, compared with same period previous year. For every dollar a middle-class household spends at retail, the affluent spends two, Danziger added.

Tom Bodenberg, chief consumer economist for Unity Marketing, said, "The luxury goods segment has recently 'smoothed out;' specifically, it is not as volatile as it has been in the previous 18 months. Whether it continues its slow upward trend to pre-2008 levels is a matter of speculation, but overall, it is a fairly good omen. There are some signs that the economy is thawing, and this forecast takes into account the expectations of the luxury consumer for the next three months."

Unity Marketing will host a 45-minute webinar at noon EDT on Thursday, September 5, to review the results of the latest tracking survey and what the Luxury Consumption Index projects for the next six months. In the webinar, Danziger will discuss:

• The latest LCI and what it predicts for the rest of 2013
• What sectors in the luxury market are trending up and what sectors are facing a headwind that may depress sales
• Key trends in luxury consumer spending and purchases in the 21 luxury categories included in the luxury tracking survey, specifically home luxuries like furniture, art, linens, tabletop, home electronics and more; personal luxuries like jewelry, watches, fashion, accessories, beauty, wine and spirits; experiences like travel, dining, spa services and physician services; and automobiles
• What's hot, what's not in luxury today in affluents customers' preferences for products, brands, stores, shopping destinations?

The webinar will last about 45 minutes and is recorded for your convenience. Subscription fee for the webinar is $500 and covers an unlimited number of attendees per site. Subscribers will also receive a copy of the detail slides used in the presentation. The recorded webinar will be stored through October 5. Finally, your subscription fee can be applied as credit toward a subscription to the Luxury Tracking Survey. 

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