The data have been clear month after month. Even in the face of heavy inflation, consumers have continued to increase their spending. And if that's the case, then everything should be fine, because that spending is almost 70% of GDP, right?
Maybe not. The problem with discussing averages is that the country isn't one where everyone sits at average, or that distributions among people are even. They aren't. That makes getting a true picture of the economy, based on consumer spending, difficult.
"While U.S. adults earning $100,000 or more seem to be taking inflation in stride when it comes to purchasing decisions, those in households earning below $100,000 a year are increasingly pulling back, with sticker shock and trading down taking a toll on spending growth," says new data from Morning Consult.
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