The middle class is spending less on 'aspirational' luxury, and it's threatening a yearslong boom in the high-end market

The middle class is spending less on 'aspirational' luxury, and it's threatening a yearslong boom in the high-end market

Artur Widak/NurPhoto via Getty ImagesThe luxury boom is slowing, hurt by a pullback in spending among middle-income households.The global luxury market shrank 2% in 2024, the first decline in 15 years.Rising prices and economic angst are hurting spending, retail and luxury experts told BI.The luxury market is losing a big customer: middle-class shoppers with money to burn.After years of YOLO spending during the pandemic era, middle-income househ…

“Uncertainty has now really taken hold among consumers,” says Morten Trasti, chief analyst at debt collection group Intrum. This is both good and bad news.

Americans have wiped out $3 trillion in savings in the past 3 years, mostly from stimulus checks

Americans have burned through $3 trillion in household savings in less than three years, according to data from the Commerce Department. Between March 2020 and August 2021, families across America stacked up around $2.1 trillion in extra cash—mostly from stimulus checks and pandemic slowdowns. That pile is now gone. By the second quarter of 2024, savings dropped all the way down to negative $900 billion as spending didn’t stop and debt kept risi…

Bank of America Warns Consumer Spending Momentum Easing Across All Income Levels, Number of Households Receiving Unemployment Payments Growing - The Daily Hodl

Consumer spending is slowing down across all income levels, according to the Bank of America’s research arm. The Bank of America Institute says consumer transactions and spending on unnecessary expenses have been waning since the beginning of the year. “The gradual easing in consumer spending momentum is not just due to lower inflation – the growth in the number of transactions has also cooled. Consumers appear to be pulling back particularly on…

Bank of America Warns Consumer Spending Momentum Easing Across All Income Levels, Number of Households Receiving Unemployment Payments Growing

Consumer spending is slowing down across all income levels, according to the Bank of America’s research arm. The Bank of America Institute says consumer transactions and spending on unnecessary expenses have been waning since the beginning of the year.