Daily Research News Online no. 8817 - US Affluent Decline for First Time in 6 Years

US Affluent Decline for First Time in 6 Years

September 3 2008

In the US, the number of 'affluent' households has dropped for the first time in six years, according to the first wave of results from TNS's annual Affluent Market Research Program (AMRP) of 'wealthy' US households.

In 2007, there were an estimated 16.4 million households valued at $500,000 or more net worth, excluding their main residences. Today this number has fallen 5 percentage points to 15.6 million.

'The decline in households is not surprising given economic conditions,' commented Ellen Sills-Levy, SVP of Investment at TNS North America. 'After several years of strong gains, all three major stock market indices posted losses over the past year. Coupled with the impact of increasing inflation and a depreciating real estate market, even the affluent are feeling the strain.'

When asked whether they think different elements of the US economy and their personal finances will be better, the same or worse in the next six months, just a fifth (19%) expect the 'overall US economy' will be better, while 70% expect it to be the same.

Twenty-eight percent think the 'broad stock market' will be better, with 38% saying that they believe it will be the same; and just a third (34%) think the 'value of their household investments' will rise in the next six months, compared with 43% who think it will remain the same.

'Although the majority of the affluent are not overly optimistic about the future, it's important to note they are not wholly pessimistic either,' stated Sills-Levy. 'With over three-quarters of affluent households anticipating that the 'value of their investments' will be the same or better, they are looking towards the future with caution, not panic.'

AMRP was launched in 1981, and is based on a representative national sample of more than 4,269 households with a net worth of $500,000 or more, excluding primary residence.

Web site: www.tns-us.com .