Affluent Americans are currently playing a significant role in driving retail spending, which is expected to continue to grow steadily in the next year. This trend has surprised many people as, despite facing high prices, Americans have continued to spend at retail stores and restaurants at a strong pace. The reason behind this is quite simple: Wealthier consumers, who have seen an increase in their income, home equity, and stock market wealth, are the ones leading this spending trend.
On the other hand, lower-income consumers have been struggling with higher prices for necessities such as rent and groceries, making it difficult for them to spend on non-essential items like electronics and entertainment. The disparities in spending patterns between different income groups highlight a gap in consumer sentiment and the actual state of the U.S. economy.
Despite challenges, experts believe that overall consumer spending will continue to rise, driven by an increase in inflation-adjusted incomes. This positive outlook is supported by recent data, which shows a consistent growth in retail sales and consumer confidence in the economy. As wealthier Americans continue to fuel spending, the economy is expected to maintain a healthy growth trajectory.
Vocabulary List:
- Affluent /ˈæ.flʊ.ənt/ (adjective): Having a great deal of wealth; prosperous.
- Disparities /dɪsˈpær.ɪ.tiz/ (noun): Inequalities or differences in some aspect.
- Necessities /nəˈsɛs.ɪ.tiz/ (noun): Basic requirements or essential items needed for living.
- Trajectory /trəˈdʒɛk.tə.ri/ (noun): The path followed by an object moving under the action of given forces; in this context it refers to the course of economic growth.
- Inflation-adjusted /ɪnˈfleɪ.ʃən əˈdʒʌs.tɪd/ (adjective): Adjusted to account for inflation reflecting real purchasing power.
- Sentiment /ˈsɛn.tɪ.mənt/ (noun): A view or opinion that is expressed; a prevailing feeling or belief.
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