Affluent Americans' confidence turned downward in the first quarter, according to a survey released today by KeyCorp's McDonald Financial Group, but this probably will not crimp their spending and investing, a McDonald executive said.
McDonald's Affluent Consumer Confidence Index reported a five-point drop in the quarter, to 50 on a scale of 100, after a seven-point rise in the fourth quarter.
David Legeay, a senior vice president at McDonald Financial in Cleveland, said wealthy people in the survey worried about the economy's direction but their near-term personal spending and investing remained high.
Mr. Legeay said people with at least $500,000 of investable assets have a "spending immunity." "When you have their financial stature," he added, "you can still spend on what you need and what you want even when you are worried about what the economy may do."
Wealthy investors continued to reemphasize wealth accumulation and stock investing, he said. In last year's third quarter, the survey found that 23% were focused on wealth accumulation. The new survey indicates that 47% have that focus, including stock investing.
The concerns of wealthy people also are shifting from terrorism and Iraq to domestic issues such as energy concerns, Social Security, and the deficit. Barring a major world event, this trend should persist, Mr. Legeay said.
The McDonald survey, which has been done quarterly since January 2003, is based on a national sample of randomly selected people who have investable assets of $500,000 or more, or $150,000 of annual personal income.
