Wealthy Americans are spending a lot on shopping and dining out, which is good for the economy. They have more money from higher incomes, home values, and stock market gains. This spending trend is different from before the pandemic. It shows that the economy could stay strong in the next year.
But people with lower incomes are struggling more with high prices for rent and food. They can’t afford to buy as many extra things like electronics or go out to eat as much. It might take them a while to recover financially.
The economy is doing well even though the Federal Reserve has raised interest rates. People keep spending money, especially at stores and restaurants. This means businesses are still making money.
Overall, wealthy people are helping the economy by spending a lot. On the other hand, lower-income households are finding it hard to spend on extra things. But things are looking up for everyone as incomes rise and prices become more stable.
