The Wealthiest 10% of US Households Now Represent Nearly 50% of Consumer Spending

Despite a turbulent economy and curtailed consumer spending across many different sectors, one metric is now making headlines: The wealthiest 10% of American households now account for nearly half of all consumer spending, the highest number on record since at least 1989, as FOX Business reported.

Citing data from a Moody's Analytics report authored by Mark Zandi, the news outlet outlined that the richest 10% of U.S. households — defined as making about $250,000 or greater — represented 49.7% of all consumer spending. That's the highest figure on record since data collection surrounding this metric was first measured by Moody's, according to Marketplace, which also pointed out that consumer spending is responsible for driving approximately 70% of United States GDP.

In the time frame ranging from September 2023 to September 2024, the highest earners increased their spending by 12%. In contrast, spending by both lower-income and middle-income American households declined during that same period.

"Wealthier households are financially more secure and thus more able and willing to spend their income," Zandi wrote. "That is, they save less than they would otherwise. This is consistent with our estimates of consumer spending by income group, which shows the well-to-do in the top quintile of the income distribution powering the recent growth in spending."

Per The Wall Street Journal, about 30 years ago, the wealthiest 10% of American households were responsible for about 36% of U.S. consumer spending.

Salon cited Zandi as stating that the wealthiest earners tend to hold more investments — both in terms of stock and real estate, among other financial instruments — and that this could be spurring a further wealth gap as both of these categories continue to gain significant value.

Wealthiest Americans Splurging on Travel, Luxury Goods

The WSJ, Marketplace, and Salon were united in reportage suggesting that the highest-earning 10% of American households were splurging, particularly on luxury goods and travel.

Salon, relying upon data from Bank of America, wrote: "From designer bags to first-class airline tickets to cruise trips, the top 5% of households spent 10% more on luxury splurges compared to last year."

Marketplace gestured toward the practice of summering or wintering in vacation hotspots abroad, signaling that this has always been a practice common to the richest demographic. Quoting Michael Brown, principal U.S. economist at Visa, over whether this practice has been on the uptick as of late, Brown appeared to concur.

"When you look at the dynamics I think there certainly is evidence to support that," Brown said, stating that the spending gulf between the well-off and the middle- and lower-income groups had widened beginning in 2023, particularly during the summer and winter.

“They’re going to Paris and loading up their suitcases with luxury bags and shoes and clothes,” said David Tinsley, senior economist for the Bank of America Institute, as quoted by the WSJ.

The WSJ profiled several wealthy households in tandem with the study results: One family recently splashed out $3,000 on a bike and budgeted $15,000 for a trip to their native India. A second family purchased a new airplane and sketched out plans to purchase a new $1 million home, while a third spoke of a family safari trip that cost them $35,000 in July.

Overall, reports indicate that a severe divide between the so-called haves and have-nots is emerging in high relief. Delta Air Lines and Royal Caribbean are reporting increased sales to wealthier customers, while stores such as Big Lots, Kohl's, and Family Dollar struggle. JPMorgan Chase analyst Matthew Boss was quoted by the WSJ on the starkly divergent fortunes pertinent to these very different business sectors.

"It’s an extreme bifurcation” between companies like Royal Caribbean and Delta and others that serve middle- and low-income Americans, he said. "They’re all battling for fewer dollars."

US Economy Has Never Been 'More Dependent' on Wealthiest Americans

As a whole, the wealthiest American households have increased spending far beyond the rate of inflation — but the remainder of Americans haven't, at least not to the same degree.

The bottom 80% of earners spent 25% more than they had four years prior, barely edging out price hikes of 21% over the same period of time. On the other hand, the top 10% of earners spent 58% more.

That could spell danger for the U.S. economy more broadly.

“The finances of the well-to-do have never been better, their spending never stronger and the economy never more dependent on that group,” said Zandi.

Of particular concern? That the stock market's surging high might soon face a major correction and that heightened tensions over tariffs (and reciprocal tariffs) may end up sapping the valuation of the wealthiest segment's assets — and their desire, or ability, to continue the flood of spending.

"Given the stretched valuations and the heightened economic policy uncertainty, the risk of a significant correction in asset markets is uncomfortably high and rising, with clear implications for the economy," Zandi added.