America’s wealthiest households account for an outsized share of consumer spending, according to Federal Reserve research published Oct. 9, raising questions about how broadly the benefits of continued economic growth are reaching ordinary Americans.
The richest 10% of families, measured by either income or wealth, account for approximately 28% of household spending, according to the Federal Reserve’s latest analysis. The findings highlight how affluent Americans can exert considerable influence over consumer demand even as some lower-income households report worsening financial conditions.
The study, based on the Fed’s 2025 Survey of Consumer Finances, found that spending on discretionary purchases was particularly concentrated among affluent families. Households in the highest income bracket accounted for more than 30% of new vehicle purchases and 40% of spending on vacations and entertainment.
The concentration is even more pronounced when households are ranked by their spending rather than their income. The top 10% of spenders accounted for approximately 32% of total expenditures and roughly half of spending on discretionary categories including vacations, dining out and new vehicles.
The findings come as Americans continue spending despite persistent affordability concerns.
U.S. retail and food services sales reached $745 billion in September, increasing 0.8% from August and 6.3% from September 2025, according to figures released Oct. 15 by the Census Bureau. The figures are not adjusted for inflation, meaning higher prices account for some of the increase.
Separate research published by the Federal Reserve Bank of New York in May found that retail spending growth had been driven by households earning more than $125,000 annually, lending support to concerns about an increasingly divided consumer economy.
The divergence is sometimes described as a “K-shaped economy,” in which higher-income households benefit from rising asset values while financially vulnerable consumers struggle to keep pace.
A September report from the JPMorganChase Institute found that investment-account withdrawals had become a growing source of potential spending power. Net withdrawals rose from the equivalent of 3.5% of consumer spending in April 2019 to 6.8% in April, with older, higher-income households leading the increase.
However, more recent evidence suggests that spending growth has begun broadening beyond affluent households.
Bank of America’s October Consumer Checkpoint found that credit and debit card spending per household increased 6.2% from September 2025, with spending growth recovering among lower- and middle-income consumers.
The Fed’s October study also cautioned against interpreting its findings as definitive evidence of a widening spending divide. Researchers found that higher-income families were not disproportionately likely to report increasing their spending, although lower-income households were more likely to report spending reductions and deteriorating financial conditions.
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