Retail Forward's future spending index falls in May
10 May '06
3 min read
The index for Down Market households (incomes less than $22,500) turned in the largest monthly decline among the three income segments, falling from 116.2 in April to 98.9 in May. Slipping job security and income growth helped push the index lower.
Additionally, higher interest rates have taken a toll on home buying, refinancing activity and debt loads, contributing to the weaker outlook for this segment.
Middle Market households (incomes between $22,500 and $75,000) are being strained by the same factors.
Assessments of jobs and incomes are more pessimistic, while home buying has moderated and debts have become more of a burden. As a result, the index for this segment declined to 97.3 from 104.4 in April.
Even Up Market households (incomes greater than $75,000), which are better able to bear economic stresses and strains, expressed concern about near-term spending plans.
Dampened by heightened worries about the job outlook and stock market performance, the index for this cohort decreased from 107.6 in April to 93.3 in May. The drag of higher debts also played a factor.
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