Driving retail spending, wealthier Americans are powering US economy
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Wealthier consumers are driving retail spending in the U.S. despite high prices; strong income, home equity, and stock market gains are key factors; Federal Reserve research indicates a shift from pre-pandemic spending patterns; lower-income consumers are struggling with higher costs, limiting discretionary spending; inflation-adjusted consumer spending rose 3% in 2022 and 2.5% in 2023; retail sales rose 0.4% from August to September 2024; restaurant sales increased by 1%; the economy grew at 3.4% in the July-September quarter; home equity for the wealthiest increased by 70% since Q1 2020; stock market wealth for the richest rose 86% to nearly $37 trillion; upper-income households' retail spending increased by 17% since January 2018; lower-income households' spending rose only 7.9%; the share of spending on discretionary items fell for lower-income groups; economists suggest overall consumer spending will remain strong as inflation-adjusted incomes rise.

#Economy #Retail #Spending #Wealth #Inflation #Consumer #FederalReserve #Income #StockMarket #Housing

https://www.pbs.org/newshour/economy/driving-retail-spending-wealthier-americans-are-powering-us-economy