""Reliance on a single segment of the economy has important implications for spending growth and its fragility, as well as for economic vulnerability and policy," New York Fed researchers wrote in a blog post."
"The recent growth in retail spending has been mostly due to the high-income households, with low-income households gaining just over 1%."
"Since 2023, the real net worth of the top 1% of earners has climbed more than..."
Economic risks are emerging as spending growth is concentrated among high-income households, leaving low-income households vulnerable to inflation. Since January 2023, real retail spending growth has been uneven, with high-income households seeing a 7.6% increase, while low-income households only gained just over 1%. The divergence began after pandemic relief programs ended, and recent data shows negative spending across all income groups. Wage growth varies, but wealth and inflation are significant factors driving this K-shaped economic dynamic.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]