High-Income US Consumers Continue Spending as Others Curtail Outlays in 2025

US consumer spending in 2025 is characterized by a significant divergence across income brackets. While high-income Americans are largely maintaining or increasing their spending rates, lower and middle-income households are notably reducing their outlays. This trend reflects broader economic pressures, including persistent inflation and the impact of tariffs, leading to a cautious approach among many consumers.

This observation aligns with recent market analyses. As noted in a tweet by Dan Primack, "> Rich Americans are spending at a higher rate this year — everyone else is slowing their roll." This sentiment is supported by data indicating a clear split in consumer behavior. High earners continue to engage in discretionary spending, such as on travel and dining out, and are more likely to spend on personal grooming and high-end restaurants.

Conversely, lower and middle-income consumers are actively cutting back on non-essential purchases and are increasingly switching to more affordable brands. Reports suggest that the overall U.S. consumer spending growth is projected to weaken to 3.7% in 2025, down from 5.7% in 2024. This slowdown disproportionately affects these income groups, with some analyses even noting emerging financial strain among some higher-income households.

The cautious sentiment is further underscored by a decline in purchase intent for big-ticket items across the general population. Rising consumer credit delinquency rates, particularly for lower-income cohorts, highlight the growing pressure on household balance sheets. Experts attribute this widespread caution to persistent inflation and the effects of tariffs, which are contributing to increased prices for goods and services.

While the overall consumer sentiment has deteriorated, the continued resilience of high-income spending indicates a segmented economic landscape. Real disposable income growth has slowed, impacting the purchasing power of many Americans. This ongoing disparity in spending patterns is expected to significantly shape market trends and business strategies throughout the remainder of 2025.