Make us your home page
Instagram

Luxury spending falls 3.9 percent in June

NEW YORK — Affluent Americans went back to tightening their belts in June after months of showing other shoppers how to spend, raising concerns for the overall economy.

Data released late Wednesday by MasterCard Advisors' SpendingPulse shows luxury spending dropped in June for the first time since November.

The 3.9 percent decline in luxury spending from a year earlier is particularly worrisome because the well-heeled — households with annual incomes in the top 20 percent, about $158,000 on average — account for almost 40 percent of overall consumer spending.

And a downtrend in luxury spending, which excludes jewelry but includes upscale clothing, accessories and restaurants, could signal trouble for retail and in turn for the broader economy.

Other figures from SpendingPulse, which tracks all transactions including cash, were mixed.

SpendingPulse saw revenue gains in clothing sales at mall-based chains, but only because a large increase in children's fashions compensated for the third monthly drop in women's clothing. And spending for major home appliances was sluggish for the second straight month as government supports faded. Online spending in all categories, however, continued to increase. Consumer electronics spending also rose slightly, helped by sales of new products including the iPad from Apple.

"In general, we are looking at a stable but mild growth," said Michael McNamara, vice president of research and analysis SpendingPulse, whose figures include transactions from Sunday, May 30, through Saturday.

After building overall momentum during the first quarter, "we've been just treading water," McNamara said.

"It isn't a good omen for the consumer recovery, which cannot exist without the luxury spender," said Mike Niemira, chief economist at the International Council of Shopping Centers.

Luxury spending falls 3.9 percent in June 07/07/10 [Last modified: Wednesday, July 7, 2010 9:16pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Strategic Property Partners launches website for Water Street Tampa

    Business

    Strategic Property Partners has launched its official website for Water Street Tampa, its 53-acre redevelopment project in downtown Tampa Tuesday.

    Strategic Property Partners on Tuesday announced the name of its new development: Water Street Tampa. [Photos courtesy of SPP]
  2. ReliaQuest CEO Brian Murphy named sole Tampa Bay winner in EY state entrepreneur contest

    Business

    ReliaQuest founder and CEO Brian Murphy was named one of nine winners statewide and the only one from the Tampa Bay area in the Ernst and Young Entrepreneur Of The Year 2017 Florida Awards program. Murphy won in the IT security division after starting ReliaQuest in 2007. Five of the nine winners were from the Miami …

    Tampa's ReliaQuest founder and CEO Brian Murphy was named one of nine winners statewide and the only one from the Tampa Bay area in the Ernst and Young Entrepreneur Of The Year 2017 Florida Awards program. Murphy won in the IT security division after starting ReliaQuest in 2007.
  3. U.S. Rep. Charlie Crist and estranged wife Carole put Beach Drive condo on the market

    Real Estate

    ST. PETERSBURG — U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their Beach Drive condo on the market for $1.5 million.

    Former Florida Gov. and current U.S. Rep. Charlie Crist and his estranged wife, Carole, have put their condo in downtown St. Petersburg on the market for $1.5 million. [Courtesy of Rhonda Sanderford]
  4. First WannaCry, now cyberattack Petya spreads from Russia to Britain

    Business

    Computer systems from Russia to Britain were victims of an international cyberattack Tuesday in a hack that bore similarities to a recent one that crippled tens of thousands of machines worldwide.

    A computer screen cyberattack warning notice reportedly holding computer files to ransom, as part of a massive international cyberattack, at an office in Kiev, Ukraine, on Tuesday.  A new and highly virulent outbreak of malicious data-scrambling software appears to be causing mass disruption across Europe.
[Oleg Reshetnyak via AP]