“America’s lowest earners are powering the economy…”

“Of course, this is basically true all the time — consumer spending accounts for about 70% of GDP growth.

But right now, investors see slowing manufacturing activity, slowing corporate investment, and slowing global growth as putting even more pressure on U.S. consumers to keep this thing going. And according to data from Bank of America Merrill Lynch published Tuesday, it is consumers at the lowest end of the wage scale that are increasingly carrying the load.

Citing Bank of America debit and credit card data, BAML analysts led by Robert Ohmes found that spending for consumers earnings less than $50,000 a year grew 5% over last year in October. Consumers making between $50,000-$125,000 grew spending a bit less than 4% while upper income consumers grew spending around 2% last month…”

https://finance.yahoo.com/news/americas-lowest-earners-are-powering-the-economy-111429762.html