Feb 13, 2007

Luxury Consumers Start 2007 In Consumer Confidence SlumpSource: Unity Marketing

Luxury consumers’ confidence declined to its lowest level in 2006 at the close of the fourth quarter. This sets the stage for more reserved spending by the nation’s affluent consumers on luxury goods and services in the first quarter of 2007.

Unity Marketing’s Luxury Consumption Index declined 5.1 points to 98.2 points in the fourth quarter 2006, down from 103.3 in the third quarter, according to the latest survey of 1,036 luxury consumers (average income $156.5 thousand and average age 42.8 years).

In keeping with a decline in consumer confidence, the typical luxury consumer spent less on luxury purchases in the period, dropping 3.4 percent from $13,432 during the third quarter to $12,982 in the fourth quarter.