Rich people are spending. Everyone else is cutting corners.

Economic Overview - The top 10% of earners account for approximately 50% of all consumer spending, marking a historic high, with their share rising from 46% in 2023 and 43% in 2020 [1] - Consumer spending by middle-income earners has remained relatively flat, with approximately $2.1 trillion spent in the second quarter of 2025, showing little change from 2023 and 2024 [2] Consumer Confidence and Economic Divide - Consumer confidence is at its lowest since June 2022, reflecting a significant economic divide characterized by a K-shaped economy, where upper-income Americans are thriving while others struggle [3] - Rising stock prices and home values have insulated top earners from financial difficulties, while lower- and middle-income Americans face a cash crunch due to a 25% increase in consumer prices since 2020 [4] Retail Outlook - Retailers and analysts are relying on high earners to drive sales during the upcoming holiday season, with upper-income shoppers expected to contribute significantly to holiday sales growth [7]