Higher-Income Consumers Are Spending, Lower-Income Households Are Hurting

Core Insights - Higher-income consumers are maintaining spending levels, while lower-income households are experiencing financial stress and reducing expenditures [1][2] Consumer Spending Trends - Overall consumer balance sheets remain healthy, allowing for continued spending in the U.S. economy [1] - Lower-income households are facing rising defaults and are pulling back on spending due to prolonged price increases [2] - Wealthier consumers are benefiting from strong stock market gains, which supports their spending habits [2]