Overview

• An analysis of Federal Reserve data by Moody’s Analytics shows the top 10% accounted for 49.2% of spending in Q2, up from 48.5% in Q1 and the highest share since 1989.
• Retail sales rose 0.6% in August, marking a third consecutive monthly increase and beating economists’ expectations, according to the Commerce Department.
• For the bottom 80% of households, spending has only kept pace with inflation since the pandemic, while those in the top 3.3% have pulled far ahead.
• Preliminary payroll revisions indicate job growth through March was about half as strong as first reported, underscoring a softer labor backdrop alongside rising loan delinquencies.
• Moody’s chief economist Mark Zandi says the expansion hinges on affluent consumers and warns a pullback tied to weaker stocks or hiring could risk a downturn.