The Daily Money: Why rich Americans' spending spree could help the US avoid a recession
It's Bailey Schulz here to bring you Friday's top headlines.
Americans have been tightening their spending to deal with high inflation and interest rates.
But not everyone is pulling back.
Data show the affluent are still splurging, with the top 10% of Americans based on income accounting for 45.5% of consumer spending in the fourth quarter, up from 44% in the third quarter. Spending by that group was up 3.8% during the last three months of 2022, compared to a 1.3% jump for the bottom 80%.
The trend could bode well for the U.S. economy, bolstering hopes that the U.S. can dodge a recession since consumer spending makes up 70% of economic activity.
“They are a critical part of any optimism that the economy can manage through this without going into a recession,” said Mark Zandi, chief economist of Moody’s Analytics.
More wives are breadwinners. Why are they still doing the laundry?
Many wives are earning just as much as their husbands in more marriages today. So why are they still doing more housework?
In marriages where both spouses earn 40% to 50% of the couple’s combined earnings, husbands spend about 3.5 hours more a week socializing and relaxing compared with their wives, according to a new study from the Pew Research Center.
Wives in these marriages spend roughly 2 hours more per week on caregiving than their husbands and 2.5 hours more on housework.
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🛍️ Retail sales down 🛍️
Retail sales fell 1% in March, surpassing the 0.4% decline economists expected.
The dip underscores that Americans’ wherewithal to spend is waning after a buying spree early in the year. Economists say the unusually warm weather in January and February had boosted retail and restaurant revenue along with travel.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.