Sep. 16 at 8:55 PM
Top 10% of US income distribution (
$220K+ annually) account for 49.2% of total spending in 2Q25 up from 48.5% in 1Q25, reaching the highest level in data going back to 1989 (3-decades ago, they accted for 36%)
Nearly 1/3rd of US GDP is now driven by the spending habits of this affluent group
Bottom 80% spent +25% more than they did 4-yrs earlier, barely outpacing price increases of +21% over that period. The top 10% spent +58% more
The figures help to explain how US economy has remained afloat & avoided recession amid decline in hiring, rising debt delinquencies & stubborn inflation that is straining many
Rising stock market & home prices continue to generate a greater wealth effect - boosting net worth by
$7.1T in 2Q25 alone
Wealthier h/holds rotated out of Treasuries & into riskier equities, amplifying their gains
While top 10% have thrived, inequality continues to widen - top 10% now own ~2/3rds of total US wealth, while the bottom 50% hold <2%
#study
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