Wealthier Americans join the cut-back club as inflation bites harder

  • Higher-income households are cutting back on discretionary spending
  • Discretionary spending by those making over $100,000 fell in June compared to last year
  • Morning Consult’s report shows a shift from previous behavior
  • Credit card debt and higher interest rates may be contributing factors

A new report from Morning Consult reveals that people making over $100,000 are cutting back on discretionary spending, such as travel and dining out. This shift could be due to higher interest rates for mortgages and car loans, which may be affecting their disposable income. The trend is also impacting luxury goods companies like LVMH Moët Hennessy Louis Vuitton and Kering.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the decrease in discretionary spending among higher-income households due to factors such as rising interest rates and inflation. It cites data from Morning Consult and other sources to support its claims and includes expert opinions on the potential impact of this trend on various industries. However, it could have provided more context on the overall economic situation and included perspectives from a wider range of experts.
Noise Level: 7
Noise Justification: The article provides a detailed analysis of consumer spending trends among higher-income households, supported by data and expert opinions. It discusses the implications of these trends on the economy and holds powerful entities accountable by highlighting the impact of rising interest rates and credit card debt. However, it could benefit from a more in-depth exploration of long-term trends and actionable insights.·
Public Companies: LVMH Moët Hennessy Louis Vuitton (FR:MC), Kering (FR:KER), Lamb Weston Holdings (), Chipotle Mexican Grill (CMG)
Key People: Kayla Bruun (senior economist at Morning Consult), Marshal Cohen (chief retail advisor at Circana)

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Financial Relevance: Yes
Financial Markets Impacted: Higher-income households’ discretionary spending impacting general merchandise sales, luxury goods makers like LVMH Moët Hennessy Louis Vuitton and Kering, and restaurant suppliers like Lamb Weston Holdings.
Financial Rating Justification: The article discusses the decrease in discretionary spending among higher-income households, which can impact the financial markets through changes in consumer behavior and company sales. This can affect various industries such as luxury goods, restaurants, and general merchandise.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses changes in consumer spending behavior among high-income households but does not mention any extreme events such as natural disasters, financial crises, or other significant incidents.·

Reported publicly: www.marketwatch.com