The top 10% of earners in the U.S. now account for 49.7% of all spending in the US

Wealthy Americans Drive Record Spending, Fueling Economic Growth

The top 10% of earners—households making $250,000 or more annually—are spending freely on vacations, luxury goods, and high-end experiences, supported by booming stock markets, rising home values, and other asset gains.

These high-income households now account for 49.7% of all consumer spending, according to an analysis by Moody’s Analytics—the highest share on record dating back to 1989. By comparison, three decades ago, they made up just 36% of total spending.

The Economy’s Dependence on the Wealthy

This surge in spending means U.S. economic growth is increasingly reliant on affluent Americans. Mark Zandi, chief economist at Moody’s Analytics, estimates that spending by the top 10% alone drives nearly one-third of the nation’s GDP.

From September 2023 to September 2024, these high earners increased their spending by 12%, while working-class and middle-class households cut back over the same period.

"The finances of the well-to-do have never been better, their spending never stronger, and the economy never more dependent on that group," said Zandi. His analysis, based on Federal Reserve data, extends through the third quarter of 2024, the most recent available.

A Growing Wealth Divide

While wealthier households have been spending well beyond inflation, the rest of America has barely kept pace with rising costs.

• Top 10% of earners have increased spending by 58% over the past four years.
• Bottom 80% of earners have spent just 25% more, only slightly above the 21% inflation rate over that period.

This growing disparity means that a stock market downturn or falling home prices could significantly impact overall economic growth. With tariff threats and rising economic uncertainty, consumer confidence—even among the wealthiest third of Americans—has started to decline.

How Rising Assets Shape Spending Power

The financial strength of top earners, who Zandi notes tend to be older and highly educated, is partly driven by soaring real estate and stock prices. While rising asset values are often seen as a sign of economic strength, they have also widened the gap between those who own property and stocks and those who don’t.

For example, Vivek Trivedi, 38, took advantage of the pandemic-era market to invest in real estate. In 2022 and 2023, he purchased three rental properties in Indianapolis, where he lives. His own housing costs remain stable because he locked in a sub-3% mortgage on his primary home when interest rates were at historic lows.

As wealthier Americans continue to spend at record levels, their financial choices will remain a key driver of U.S. economic momentum—and a potential risk if their confidence wavers.