Some Americans are spending freely despite rising grocery prices. The top 10% of earners now make up nearly half of all U.S. consumer spending, driving 49.2% in the second quarter of 2025. This growing divide between high and middle earners is fueling a K-shaped economy.

Middle and lower-income Americans are barely increasing spending, facing elevated costs from pandemic surges. The divide is not just due to rising prices but also wealthier households owning homes and holding more in stocks.

High earners are driving the economic train with their spending. A decline in stock prices could lead to an immediate cutback in discretionary spending. For everyone else, budgets remain tight with prices still far higher than pre-pandemic levels.

The U.S. economy is heavily reliant on wealthy consumers. Caution is advised for millions of Americans, as long as spending remains concentrated at the top, the recovery and risks will continue to be uneven.

For more details, refer to USA Today, Census.gov, CPI Inflation Calculator, The Associated Press, Bankrate, and NPR.

Read more at Yahoo Finance: The top 10% of earners drive nearly half of all consumer spending. Is our economy too dependent on the wealthy?