Primerica’s Household Budget Index shows increased purchasing power in October

Primerica (NYSE:) Inc., a financial services provider in North America, has reported an increase in the purchasing power of middle-income households for October. The company’s Household Budget Index (HBI™), which tracks the financial health of families earning between $30,000 and $130,000 annually, rose to 99.1%, up from 98.1% in September. This uptick suggests that despite persistent inflation concerns, these households have slightly more financial leeway.

The HBI™, which reached its peak in November 2020 at 105.1%, had previously plummeted to a post-pandemic low of 86.7% by June 2022, illustrating the significant strain inflation has placed on family budgets. Since January 2019, it’s estimated that there has been an excess spend of approximately $1,095 on essentials by these families.

Primerica CEO Glenn J. Williams highlighted the ongoing challenges of inflation, even as the index shows a positive shift in purchasing power. In response to these challenges, Primerica has adjusted the HBI™ calculation by excluding health insurance costs. The company has insured over 5.7 million lives and manages more than 2.8 million client investment accounts as of the end of 2022.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link