Lates News

The increasing proportion of wealthy consumers in American consumer spending highlights the imbalance in economic performance. At the same time, slowing recruitment, cautious attitudes of other income groups, and worries about economic slowdown are exacerbated. Mark Zandi, chief economist at Moody's Analytics, stated that in the second quarter, the top 10% of consumers in income distribution accounted for 49.2% of total consumer spending, higher than 48.5% in the first quarter, reaching the highest level since 1989. These data help explain why despite a sharp decline in recruitment, rising debt delinquency rates, and stubborn inflation putting pressure on many households, the economy has not fallen into recession and continues to grow. Preliminary benchmark revisions to non-farm payroll data released last week showed that average monthly job growth in the 12 months ending in March was only about half of what was previously reported. Some economists are worried that the current trend of a small number of Americans accounting for an increasing proportion of consumer spending, supporting economic expansion, may make the foundation of economic growth unstable, especially as other risks intensify.