Survey Finds the Rich Returning to Familiar Spending Habits

Experts Say Recovery in Consumer Spending Will be Led By the Wealthy

By Jack Neff
Published: September 15, 2009

BATAVIA, Ohio. (AdAge.com) -- A year after the Lehman Bros. collapse sent financial markets and consumer spending reeling, conspicuous consumption isn't dead after all among the 23.9 million U.S. households with incomes of at least $100,000.

Of course, it's still hurting: The 2009 Ipsos Mendelsohn survey of the affluent, being released a year to the day of the Lehman collapse, finds consumers in that income bracket planning less overseas travel than in 2008 (down 10%); fewer are planning on buying new cars (down 18%); and are less inclined to invest in securities (down 5%).

But even so, they are planning on doing all those things. The survey projects that someone in 12.2 million of wealthy households will journey outside the U.S. this year; 6.3 million will buy or lease new cars, trucks or SUVs; and 13.9 million will invest in stocks or mutual funds.
Feelings of optimism

Bob Shullman, president of Ipsos Mendelsohn, prefers a glass-full approach, noting that the vast majority of the affluent are still planning to buy big-ticket items. The Ipsos Mendelsohn affluent-tracking "barometer" also finds significant increase in the percentage of the wealthy feeling optimistic about the U.S. economy in the latest poll ending Sept. 1: 54% vs. 50% in April and July.

Despite pullbacks on spending plans in many big-ticket categories, the number of affluent individuals planning to marry, get engaged, have children or retire remained unchanged from 2008 to 2009. It takes more than a recession -- something more like the Great Depression -- to change those numbers, Mr. Shullman said.

The number of affluent households in which someone plans to start a business, however, dropped around 24% to 1.7 million in 2009 from 2008. There are other numbers that aren't pretty -- and arguably fewer of the affluent will be as well -- what with a 40% decline in the number planning cosmetic surgery this year compared to last, down to around 600,000....

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