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Data show a resilient economy Wealthy consumers continue to account for a growing share of us consumer spending, highlighting the lopsided strength of the economy as a slowdown in hiring and wariness among other income cohorts. But that largely reflects spending by the rich, while others pull back amid high prices and a weakening labor market.
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In contrast, wealthy americans are continuing to splurge on luxury goods and services Meantime, spending from middle and lower income consumers has flatlined to kick off 2025, roughly in line with inflation. This dichotomy has significant implications for the overall economy, as it suggests that growth is becoming increasingly dependent on the spending habits of a.
Coming out of the pandemic, bank of america institute’s david tinsley tells fortune, “there was a narrowing of wealth inequality, and now it’s widening.”
The bottom 80% of earners spent 25% more than they did four years earlier, barely. The top 20% of earners now make up over half of consumer spending, according to moody's
