Moody's: Wealthiest 20% Drive US Economy

Data shows that the wealthiest 20% of American consumers now account for 60% of total spending, due to the increasing value of their assets, especially stocks. This reflects a growing reliance of economic growth on a small segment of society. While the spending of this group is growing at 6.5%, the spending of the remaining 80% remains steady, highlighting the widening and ongoing economic inequality since the COVID-19 pandemic. This presents a challenge to economic forecasts, as the market is heavily concentrated in the hands of the wealthy, with warnings of potential market corrections and a decline in spending.

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