'A little concerning': 2 crucial consumer groups under pressure are a warning sign for US economy

Economic Overview - The Federal Reserve acknowledges a split US economy, with spending concentrated among higher-income households, despite overall economic resilience [1][2] - Consumer spending has been growing, primarily driven by higher-end consumers, which is a significant factor in the economy [2] Company Insights: Chipotle - Chipotle's CEO reported a meaningful pullback in spending among younger and lower-income customers, leading to a nearly 20% drop in shares [3] - Households earning under $100,000, which account for approximately 40% of Chipotle's sales, have significantly reduced their frequency of visits, particularly among the 25-to-35 age group [4] Industry Trends - The trend of reduced spending among lower-income consumers is not isolated to Chipotle but is observed across the restaurant industry and many discretionary categories [5] - Factors contributing to this trend include rising unemployment, increased student loan repayments, and slower real-wage growth, with the unemployment rate for Americans aged 20 to 24 reaching 9.2% in August, the highest since early 2021 [5]