Consumers Experienced Increase in Purchasing Power in September with Slowing Inflation and Higher Income Growth
30 Ottobre 2023 - 12:00PM
Business Wire
Latest index shows middle-income families are
seeing improvements in spending power, yet still recovering from
the cumulative impact of high inflation
Primerica, Inc. (NYSE: PRI), a leading provider of financial
services in the United States and Canada, announced today the
release of the Primerica Household Budget Index™ (HBI™), a monthly
index illustrating the purchasing power of middle-income households
with incomes between $30,000 and $130,000. In September 2023, the
average purchasing power for middle-income households was 99.3%, up
from 97.4% in August. In September 2022, the index stood at
89.3%.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231030387479/en/
Primerica Household Budget Index™ (HBI™)
- In September 2023, the average purchasing power for middle-income
households was 99.3%, up from 97.4% in August. In September 2022,
the index stood at 89.3%. Latest index shows middle-income families
are seeing improvements in spending power, yet still recovering
from the cumulative impact of high inflation. (Graphic: Business
Wire)
“Wage growth outpaced the increased cost of necessities in
September 2023, improving the purchasing power of middle-income
households to 99.3%,” said Glenn J. Williams, CEO of Primerica.
“Although there were modest improvements in spending power this
September, the cumulative effect of high inflation for several
months continues to strain middle-income budgets and create stress
in families.”
“Over the past 18 months, families have had to dig into savings
or go into debt to cover the cost of everyday necessity items,”
said Amy Crews Cutts, Ph.D., CBE®, economic consultant to
Primerica. “The big bump that many middle-income households got
from federal pandemic-related Economic Impact Payments is gone and
with it the cushion to weather higher costs for food and utilities
heading into winter. We got lucky last year with a mild winter and
forecasters are expecting a similar weather pattern for this winter
season, although home heating fuel is predicted to be 8% higher
over the next few months and could offset this positive budget
impact.”
HBI HISTORICAL BACKGROUND
The index baseline is set at January 2019 and can be thought of
as when middle-income households set a budget based on their earned
income at that time. Between 2014 and 2020, the HBI™ results
recorded steady gains in purchasing power for middle-income
families, with a peak of 102.8% in November 2020. This means
relative to January 2019, households were in a stronger financial
position to pay their monthly bills because wage growth outpaced
the cost of everyday goods. Increasing inflation then caused the
index to plummet. In June 2022, it reached a post-pandemic low of
85.4%.
Since the baseline of January 2019, the average middle-income
household has cumulatively spent around $2,683 more than budget on
basic necessities. In line with this, if the pandemic and ensuing
inflation would not have been a factor, the HBI™ today would be
closer to 110%.
For more information on the Primerica Household Budget Index™,
visit www.householdbudgetindex.com.
About the Primerica Household Budget Index™ (HBI™)
The Primerica Household Budget Index™ (HBI™) is constructed
monthly on behalf of Primerica by its chief economic consultant Amy
Crews Cutts, PhD, CBE®. The index measures the purchasing power of
middle-income families with household incomes from $30,000 to
$130,000 and is developed using data from the U.S. Bureau of Labor
Statistics, the US Bureau of the Census, and the Federal Reserve
Bank of Kansas City. The index looks at the cost of necessities
including food, gas, utilities and health care and earned income to
track differences in inflation and wage growth.
The HBI™ is presented as a percentage. If the index above 100%,
the purchasing power of middle-income families is stronger than in
the baseline period and they may have extra money left over at the
end of the month that can be applied to things like entertainment,
extra savings, or debt reduction. If it is under 100%, households
may have to reduce overall spending to levels below budget, reduce
their savings or increase debt to cover expenses. The HBI™ uses
January 2019 as its baseline. This point in time reflects a recent
“normal” economic time prior to the COVID-19 pandemic.
Periodically, prior HBI™ values may be revised due to revisions
in the CPI series and Consumer Expenditure Survey releases by the
U.S. Bureau of Labor Statistics.
About Primerica, Inc.
Primerica, Inc., is a leading provider of financial services to
middle-income households in North America. Independent licensed
representatives educate Primerica clients about how to better
prepare for a more secure financial future by assessing their needs
and providing appropriate solutions through term life insurance,
which we underwrite, and mutual funds, annuities and other
financial products, which we distribute primarily on behalf of
third parties. We insured over 5.7 million lives and had over 2.8
million client investment accounts on December 31, 2022. Primerica,
through its insurance company subsidiaries, was the #3 issuer of
Term Life insurance coverage in the United States and Canada in
2022. Primerica stock is included in the S&P MidCap 400 and the
Russell 1000 stock indices and is traded on The New York Stock
Exchange under the symbol “PRI.”
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231030387479/en/
Public Relations Gana Ahn, 678-431-9266
gana.ahn@primerica.com
Investor Relations Nicole Russell, 470-564-6663
nicole.russell@primerica.com
Grafico Azioni Primerica (NYSE:PRI)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Primerica (NYSE:PRI)
Storico
Da Set 2023 a Set 2024