America’s wealthy plan to increase their spending on luxury goods this year, forking out $26.6 billion more than in 2010, according to an American Express Publishing and Harrison Group survey of 1,458 families with more than $100,000 that can be spent on non-essentials. Total spending on cars, furniture and other big-ticket items is expected to reach $359 billion, up nearly 8% from last year. Vacation spending is expected to increase by 7%...but spending on jewelry and handbags will probably drop.

 

News of the affluent opening their wallets more may mean better times for the retail economy, given that the richest 10% of Americans account for about 50% of all consumer spending in the United States.

 

Jim Taylor, vice-chairman of Harrison Group, explained in a statement that “The nearly $4 trillion in their money market funds gives these consumers the power to purchase with cash.”

-Noel Brinkerhoff, David Wallechinsky

 

U.S. Luxury Spending by Rich to Rise; Value Sought (by Michelle Nichols, Reuters)

$26B Spree Ahead for Wealthy (by Todd Venezia, New York Post)