Primerica Household Budget Index™: Middle-income households’ purchasing power reaches break-even level

Primerica , a provider of financial services in the United States and Canada, announced 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 November 2023, the average purchasing power for middle-income households was 100.5%, up from 99.1% in October. A year ago, the index stood at 93.7%.

“During November, a significant decrease in gasoline prices and a small decrease in food prices, accompanied by continued strength in household incomes, allowed middle-income families to stem the loss of purchasing power they have experienced for several consecutive months,” said Glenn J. Williams, CEO of Primerica. “These families have consistently indicated that the cost of living is weighing on their financial security.”

In November, HBI™ data showed middle-income households saw modest improvements in spending power. However, since 2021, driven by the increased costs of necessity items, households experienced an average cumulative budget deficit of nearly $2,500.

“So much has happened since January 2019, and for the index to finally come back to the baseline value is a welcome outcome,” said Amy Crews Cutts, Ph.D., CBE^®, economic consultant to Primerica. “But it doesn’t mean that all is grand. Had the pandemic never happened, the HBI™ would likely be approximately 10% higher than it is now, there would be more savings accumulation for middle-income households, and middle-income families would not be carrying all the new credit card debt they incurred when inflation was roaring well ahead of earned income.”