"WSJ": Almost half of all purchases are made by the richest 10 percent

The wealthiest 10 percent of American households are responsible for nearly 50 percent of spending, reported The Wall Street Journal, citing Moody's analysts.

The wealthiest households (those with incomes of at least $250,000 a year) have benefited from, among other things, rising real estate and stock prices. Now they are taking advantage of the gains, the WSJ reported. The newspaper noted that while rising asset values ​​are considered an indicator of the strength of the economy, it is also widening the gap between those who own homes and stocks and those who don’t.

According to the daily, the fact that only 10 percent of households are responsible for 49.7 percent of purchases has not occurred in the American economy since at least 1989. Thirty years ago - the daily emphasized in its Sunday text - the richest 10 percent were responsible for only 36 percent of spending.

Between September 2023 and September 2024, the wealthiest increased their spending by 12 percent. At the same time, spending by the middle class and poorer strata fell over the same period.

This means that future US economic growth will be very much dependent on whether the wealthiest continue to spend. According to experts, their purchases currently account for almost a third of US GDP. "The economy has never been more dependent on this group," said the Moody's expert.

However, if real estate prices fall, stock prices fall and the richest cut spending, it will have a negative impact on the economy. Meanwhile, consumer sentiment, including the richest third, has recently begun to deteriorate, noted "WSJ". (PAP)

os/ mms/

The wealthiest 10 percent of American households are responsible for nearly 50 percent of spending, reported The Wall Street Journal, citing Moody's analysts.

The wealthiest households (those with incomes of at least $250,000 a year) have benefited from, among other things, rising real estate and stock prices. Now they are taking advantage of the gains, the WSJ reported. The newspaper noted that while rising asset values ​​are considered an indicator of the strength of the economy, it is also widening the gap between those who own homes and stocks and those who don’t.

According to the daily, the fact that only 10 percent of households are responsible for 49.7 percent of purchases has not occurred in the American economy since at least 1989. Thirty years ago - the daily emphasized in its Sunday text - the richest 10 percent were responsible for only 36 percent of spending.

Between September 2023 and September 2024, the wealthiest increased their spending by 12 percent. At the same time, spending by the middle class and poorer strata fell over the same period.

This means that future US economic growth will be very much dependent on whether the wealthiest continue to spend. According to experts, their purchases currently account for almost a third of US GDP. "The economy has never been more dependent on this group," said the Moody's expert.

However, if real estate prices fall, stock prices fall and the richest cut spending, it will have a negative impact on the economy. Meanwhile, consumer sentiment, including the richest third, has recently begun to deteriorate, noted "WSJ". (PAP)

os/ mms/

The wealthiest 10 percent of American households are responsible for nearly 50 percent of spending, reported The Wall Street Journal, citing Moody's analysts.

The wealthiest households (those with incomes of at least $250,000 a year) have benefited from, among other things, rising real estate and stock prices. Now they are taking advantage of the gains, the WSJ reported. The newspaper noted that while rising asset values ​​are considered an indicator of the strength of the economy, it is also widening the gap between those who own homes and stocks and those who don’t.

According to the daily, the fact that only 10 percent of households are responsible for 49.7 percent of purchases has not occurred in the American economy since at least 1989. Thirty years ago - the daily emphasized in its Sunday text - the richest 10 percent were responsible for only 36 percent of spending.

Between September 2023 and September 2024, the wealthiest increased their spending by 12 percent. At the same time, spending by the middle class and poorer strata fell over the same period.

This means that future US economic growth will be very much dependent on whether the wealthiest continue to spend. According to experts, their purchases currently account for almost a third of US GDP. "The economy has never been more dependent on this group," said the Moody's expert.

However, if real estate prices fall, stock prices fall and the richest cut spending, it will have a negative impact on the economy. Meanwhile, consumer sentiment, including the richest third, has recently begun to deteriorate, noted "WSJ". (PAP)

os/ mms/