Consumer Spending Boosted By Wealthy Americans 7/9/26

Summary

Gabriela Santos of J.P. Morgan notes that US consumer spending is tracking slightly below trend but remains fine, with 40% driven by the top 20% of income earners. The host adds that lower gas prices from Iran war highs could fuel broader spending confidence.

• US consumer spending tracking about 2% real in Q2, below trend but considered fine.
• 40% of spending is driven by the top 20% income consumers.
• Wealthy Americans' spending is keeping overall economic growth afloat despite high inflation.
• Gas prices down somewhat from Iran war highs may boost consumer confidence across all income brackets.
• Consumer spending makes up roughly two-thirds of US economic growth.