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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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But high debt balances mean that even people who are keeping up with payments have little room to borrow more if their costs rise or their incomes fall And the gap between how high earners and low earners are behaving is only widening. Spending by america’s wealthiest households is powering the economy, moody’s warns, while the bottom 80% have only kept pace with inflation.
A significant share of wealthier americans are coping with financial pressure by cutting spending, including dialing back restaurant visits and entertainment.
But lately, a growing share of spending comes from the wealthiest households
