The wealthy ramp up spending while other Americans tread water, new study finds

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The wealthy ramp up spending while other Americans tread water, new study finds

2026-02-04 01:13 Last Updated At：01:20

WASHINGTON (AP) — Higher-income Americans and those with college degrees have ramped up their spending more quickly in the past three years than other consumers, according to new data released Tuesday, evidence of worsening inequality that may explain some of the growing pessimism about the economy.

The data, released by the Federal Reserve Bank of New York, also show that in the final three months of last year, lower-income and rural households faced higher inflation than higher-income households. The spending data focuses only on goods excluding autos, and does not capture likely spending by higher-income households on travel, restaurants and entertainment.

The figures add support to the notion of a “K-shaped” economy, in which upper-income Americans are fueling a disproportionate share of the consumption that is the primary driver of the economy, while lower-income households see fewer gains. Poorer households in general often experience higher inflation, with a greater share of their spending being set aside for goods that have seen prices soar since the pandemic, things like housing, groceries, and utilities.

The New York Fed's data show that households with incomes of $125,000 and higher have boosted their spending 2.3%, adjusted for inflation, since 2023, while middle-income households — those between $40,000 and $125,000 — have increased their spending by 1.6%. Those earning below $40,000 have lifted their spending by just 0.9%, the report showed.

The figures are an addition to the New York Fed's economic heterogeneity indicators, a series of data sets intended to track variations in the economy by geographic region and demographic and income groups. The goal is to get a better sense of how different groups are faring, trends that can be shrouded by nationwide averages.

The figures are derived from a group of 200,000 consumers tracked by the analytics firm Numerator. Their data closely tracks monthly retail sales released by the government, the New York Fed said.

The report underscores a pattern that has emerged since the pandemic: Lower-income households fared better in 2021 and 2022 when companies were desperate to hire and willing to pay, while the government also provided several economic stimulus checks. Yet beginning roughly in early 2023, hiring slowed and sharp gains in stock market fueled spending gains in wealthier households.

The division is also clear when examined through the lens of education. In 2023 and most of 2024, inflation-adjusted spending by non-college households fell below its January 2023 level. It only regained that level in November 2024, while households with a college graduate had by then boosted their spending by 4%.

The New York Fed notes that college-educated households continued to spend at a rapid pace in 2025 even as hiring slowed and there were a spate of job cuts in white-collar industries such as high tech, government and marketing.

“The difference in the trend in retail spending between college graduates and nongraduates is consistent with the story of a ‘K-shaped economy,’” Rajashri Chakrabarti, an economic research advisor at the New York Fed, and three colleagues wrote.

The findings echo other recent research, including a short paper by the Federal Reserve Bank of Dallas last November. The Dallas Fed found modest increases in consumption and income inequality over the past three decades. The wealthiest one-fifth of Americans accounted for about 54% of earnings from 1990-99, the researchers found, a figure that had risen to 60% in the 2020-2025 period. The proportion of spending by the richest one-fifth increased to 57% from 53% between those two periods, the Dallas Fed concluded.

Disney parks chief Josh D’Amaro will take over for Bob Iger as CEO

Disney has named its parks chief Josh D’Amaro to succeed Bob Iger as the entertainment giant's top executive.

D’Amaro will become the 9th CEO in the more than 100-year-old company's history. He has overseen the company’s theme parks, cruises and resorts since 2020. The Experiences division has been a substantial moneymaker for Disney, with $36 billion in annual revenue in fiscal 2025 and 185,000 employees worldwide.

The 54-year-old takes over a time when Disney is flush with box-office hits like “Zootopia 2” and “Avatar: Fire and Ash” and its streaming business is strong. At the same time, Disney has seen a decline in foreign visitors to its domestic theme parks. Tourism to the U.S. has fallen overall during an aggressive immigration crack down by the Trump administration, as well as clashes with almost all of country's trading partners.

D'Amaro will be tasked with tapping into Disney's vast collection of intellectual property to help create successful movies and theme park additions, while also pushing for streaming growth and continuing to build up its sports business.

The decision on the next chief executive at Disney comes almost four years after the company's choice to replace Iger went disastrously, forcing Iger back into the job.

Only two years after stepping down as CEO, Iger returned to Disney in 2022 after a period of clashes, missteps and a weakening financial performance under his hand-picked successor, Bob Chapek.

Disney meticulously and methodically sought out its next CEO this time. The company created a succession planning committee in 2023, but the search began in earnest in 2024 when Disney enlisted James Gorman, who is currently Disney's chairman and previously served as Morgan Stanley's executive chairman, to lead the effort. That still gave it ample opportunity to vet candidates, as Iger agreed to a contract extension.

Disney said that Iger will continue to serve as a senior adviser and board member until his retirement from the company at the end of the year.

While external candidates were considered, it was widely expected that Disney would look internally for the next CEO. The advantage would be that Disney executives were already being mentored by Iger, and had extensive contact with the company’s 15 board members, of which Iger is a member.

Disney is unique in that its top executive must oversee a sprawling entertainment company with branches reaching in every direction, while also serving as an unusually public figure.

D’Amaro and Disney Entertainment Co-Chairman Dana Walden quickly emerged as the front-runners for the top job.

D’Amaro, who has been with Disney since 1998, has been leading the charge on Disney’s multiyear $60 billion investment into its cruise ships, resorts and theme parks. He also oversees Walt Disney Imagineering, which is in charge of the design and development of the company’s theme parks, resorts, cruise ships, and immersive experiences worldwide. In addition, D’Amaro has been leading Disney’s licensing business, which includes its partnership with Epic Games.

“Throughout this search process, Josh has demonstrated a strong vision for the company’s future and a deep understanding of the creative spirit that makes Disney unique in an ever-changing marketplace," Gorman said in prepared remarks. “He has an outstanding record of business achievement, collaborating with some of the biggest names in entertainment to bring their stories to life in our parks, showcasing the power of combining Disney storytelling with cutting-edge technology.”

In her most recent role as co-chairman of Disney Entertainment, Walden has helped oversee Disney’s streaming business, along with its entertainment media, news and content businesses. She joined Disney in 2019. Before that, Walden spent 25 years at 21st Century Fox and was CEO of Fox Television Group.

Walden will now step into the newly created role of president and chief creative officer of The Walt Disney Co. She will report to D'Amaro.

“I think if you think about what is the heart of the Disney company, it’s the creativity. It’s this amazing IP that’s been produced over decades, going back to Walt, and the storytelling that comes from that creativity. And I think Dana, working with Josh and ensuring that the best creativity permeates all of our businesses, is what we wanted,” Gorman said in an interview with CNBC.

There had been speculation that Disney might go the route of naming co-CEOs, a move that has started to become more popular with companies. Oracle and Spotify are among those who named co-CEOs in 2025.

D’Amaro and Walden's appointments are effective on March 18.