America's wealthiest households are accounting for a growing share of consumer spending as market-driven gains in their net worth fuel a wealth effect, a new analysis by Moody's Analytics finds. The report authored by Moody's Analytics chief economist Mark Zandi found that the top 10% of U.S. households in terms of earnings, defined as making about $250,000 or higher, account for 49.7% of consumer spending – a record since at least 1989, according to the analysis. That figure marks a significant rise over the past three decades, when the highest 10% of income earners accounted for about 36% of consumer spending, Moody's Analytics found. Zandi's analysis suggests that the growth in U.S. gross domestic product (GDP) is heavily reliant on the spending habits of the highest-earning Americans. He estimated that spending by the top 10% of earners contributed at least one-third of GDP. US CONSUMER SENTIMENT PLUNGES ON WORRIES OVER PRICES FROM INFLATION AND TARIFFS

Click to read the full article