CONSUMER CONSUMPTION

During the year ending 7/25, spending increased 2% for the top third of households, those earning over $120,000/year, 1% for the middle third of households, and was zero, or zilch for the bottom third of households, those earning roughly $50,000/year or less. Consumer spending is almost 70% of overall GDP and it’s increasingly being done by the better off, due to better wage growth and substantially more capital gains.