Evidence of Diverging Spending Behavior by Income

It has been suggested that the relatively strong growth in aggregate consumer spending is driven primarily by high-income, high-asset consumers, while spending growth among consumers with lower incomes has been relatively modest. Using survey data collected in early October 2025, we find confirming evidence that lower-income respondents are more likely than higher-income respondents to report consciously attempting to reduce their spending and to report reducing their actual spending in the last three months as compared with a year ago. A slight majority of respondents indicate that the rising cost of goods and services is the primary factor driving the change in their spending. That said, lower-income respondents were more likely than higher-income respondents to cite changes in their personal circumstances (e.g., income, household size, employment status, etc.) as the primary factor affecting their recent spending.