The economy might hum along on paper, but real demand and real buying power are trapped at the top.
US consumer spending is extremely concentrated among high-income households:
Households in the top 20% of the income distribution now reflect ~39% of all spending on goods and services.
Their concentration is even higher in new vehicle purchases, where they make up ~55% of total spend.
This is followed by households in the 60% to 80% income bracket, which represent ~23% of total spending and ~21% of new vehicle purchases.
As a result, nearly 8 out of 10 new vehicles are bought by the top 40% of households.
Meanwhile, the bottom 20% contribute just 9% of total spending and a mere 4% of new vehicle demand.
The US wealth divide has never been larger.
US consumer spending is extremely concentrated among high-income households:
Households in the top 20% of the income distribution now reflect ~39% of all spending on goods and services.
Their concentration is even higher in new vehicle purchases, where they make up ~55% of… pic.twitter.com/EYUDnMSEqJ
— The Kobeissi Letter (@KobeissiLetter) December 30, 2025
There it is…the K shaped economy made the December Fed minutes on page 11:
"A MAJORITY of participants mentioned evidence of stronger spending growth for higher-income households, while lower-income households had become increasingly price sensitive and were making adjustments… pic.twitter.com/hEC2PmoVI8
— Heather Long (@byHeatherLong) December 30, 2025
"Households are spending without income growth. Real disposable income was essentially flat in the third quarter—literally 0% growth. Americans did not gain purchasing power," per FORTUNE.
— unusual_whales (@unusual_whales) December 30, 2025