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2025-09-16 23:12:03
The top 10% of US income earners account for nearly half of consumer economic growth, highlighting growing imbalances. The continued rise in the share of wealthy consumers in US consumer spending highlights the imbalance in economic performance, while slowing hiring and cautious attitudes among other income groups are fueling concerns about a slowdown. Moody's Analytics Chief Economist Mark Zandi said that in the second quarter, consumers in the top 10% of the income distribution accounted for 49.2% of total consumer spending, up from 48.5% in the first quarter and the highest level since 1989. These data help explain why the economy has avoided a recession and maintained growth despite a sharp decline in hiring, rising debt delinquencies, and stubborn inflation weighing on many households. Preliminary revisions to the nonfarm payrolls benchmark released last week indicate that monthly job creation in the 12 months ending in March averaged only about half the previously reported rate. Some economists worry that the current trend of a minority of Americans supporting the economic expansion through a growing share of consumer spending could undermine the foundations of growth, especially as other risks intensify.
