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U.S. Family Income Declines. Effects On Diamond Sales.
While price hikes (due to surging oil prices) impacted consumer pocket books in 2005, the Federal Reserve said families in the United States were already experiencing a drop in incomes one year earlier.
The Federal Reserve publishes its Survey of Consumer Finances every third year, and it drew 2004 comparisons to income rates in year 2001. The average family income in the United States fell 2.3 percent in 2004. The average family net worth rose at a slow pace, due in part to higher real estate values and not due to cash on hand or stock investments.
The average family income in the United States was $70,700 for 2004, with the median (half above and half below) figure was $43,200, an increase of 1.6 percent from year 2001.
Average net worth rose 1.5 percent to $93,100, or 9 percentage points less than the rise in 1998 to 2001.
With diamond and jewelry prices going up, consumers may look for better cut, lower color/clarity combinations in order to maintain carat weight.
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