Reported 3 days ago
Wealthy Americans earning over $100,000 per year are significantly boosting spending in various sectors of the US economy, including travel and luxury goods, while lower-income households struggle to keep up with rising prices and are pulling back on expenses. Data shows that spending by top earners increased by 2.6% compared to just 0.6% for the lowest income group. The disparity is attributed to wage growth, with higher earners seeing a 4% increase, lapping inflation, unlike their lower-income counterparts. This trend is reflected in sectors like dining, retail, and the auto industry, where higher-income consumers are driving the market, even as budget retailers adjust their strategies to accommodate both wealthy and squeezed consumers.
Source: YAHOO