Primerica Household Budget Index™ - Purchasing Power for Middle-Income Families Increased Over Previous Month

Rhea-AI Summary

Primerica, Inc. (NYSE: PRI) has released the Primerica Household Budget Index™ (HBI™) for August 2024, showing an increase in purchasing power for middle-income families. The index, which measures the purchasing power of households with incomes between $30,000 and $130,000, rose to 102.2% in August from 101.5% in July 2024.

This marks the highest level since February 2021 and represents a 5% increase from August 2023, when the index stood at 97.2%. The improvement in purchasing power is attributed to falling gas and utilities prices, along with steady food prices. For more information, visit www.householdbudgetindex.com.

Positive

• Purchasing power for middle-income families increased to 102.2% in August 2024
• HBI™ reached its highest level since February 2021
• 5% year-over-year increase in purchasing power
• Falling gas and utilities prices benefited middle-income households

Negative

• None.

Insights

Financial Analyst

The Primerica Household Budget Index™ (HBI™) provides valuable insights into the economic health of middle-income households. The 5% year-over-year increase in purchasing power is a significant positive indicator, suggesting improved financial conditions for a key consumer segment. This could potentially translate to increased consumer spending and confidence, which may benefit companies across various sectors, including Primerica itself.

The index's rise to 102.2% in August 2024, marking the highest level since February 2021, is particularly noteworthy. This trend, coupled with falling gas and utilities prices and stable food costs, paints a picture of easing inflationary pressures. For investors, this could signal a more favorable economic environment, potentially leading to stronger consumer-driven growth and improved corporate earnings in sectors reliant on middle-income consumers.

While this data is positive for Primerica and the broader economy, it's important to note that the index is a relatively new metric and its long-term predictive power is yet to be fully established. Investors should monitor how this translates into Primerica's financial performance and client acquisition in future quarters.

DULUTH, Ga.--(BUSINESS WIRE)-- Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products 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 income between $30,000 and $130,000. In August 2024, the average purchasing power for middle-income families was 102.2%, up from 101.5% in July 2024. Spending power reached its highest level since February 2021 in August and was 5% higher than a year ago, when the index stood at 97.2%. Middle-income households benefited from falling gas and utilities prices along with steady food prices.

Primerica Household Budget Index™ - In August 2024, the average purchasing power for middle-income families was 102.2%, up from 101.5% in July 2024. Spending power reached its highest level since February 2021 in August and was 5% higher than a year ago, when the index stood at 97.2%. (Graphic: Business Wire)

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 is 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 (BLS). Beginning with the October 2023 release of the HBI™ data, health insurance costs will no longer be included in the calculation of the HBI™ data as part of the healthcare component because of some newly acknowledged methodology that has been used by the BLS to calculate the health insurance CPI. The health insurance CPI, as calculated by BLS, does not measure consumer costs of health insurance such as the cost of premiums paid or a combination of premiums and deductibles, but rather premium values retained by health insurers we do not believe it accurately reflects consumer experiences. The healthcare component will continue to include medical services, prescription drugs and equipment. Prior published values have been adjusted to reflect this change. For more information visit householdbudgetindex.com.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial products and 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 approximately 5.7 million lives and had approximately 2.9 million client investment accounts on December 31, 2023. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in the United States and Canada in 2023. 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/20240929123604/en/

Public Relations

Gana Ahn, 678-431-9266

gana.ahn@primerica.com

Investor Relations

Nicole Russell, 470-564-6663

nicole.russell@primerica.com

Source: Primerica, Inc.

FAQ

What is the Primerica Household Budget Index™ (HBI™) for August 2024?

The Primerica Household Budget Index™ (HBI™) for August 2024 is 102.2%, indicating an increase in purchasing power for middle-income families.

How much did the Primerica HBI™ increase from July to August 2024?

The Primerica HBI™ increased from 101.5% in July 2024 to 102.2% in August 2024, showing a 0.7 percentage point increase.

What factors contributed to the improvement in Primerica's HBI™ for August 2024?

The improvement in Primerica's HBI™ for August 2024 was attributed to falling gas and utilities prices, along with steady food prices.

How does the August 2024 Primerica HBI™ compare to the previous year?

The August 2024 Primerica HBI™ of 102.2% is 5% higher than the August 2023 index, which stood at 97.2%.