US consumer spending increased slightly more than expected in August, increasing by 0.6% after a 0.5% gain in July. This increase in spending keeps the economy on solid footing as the third quarter progresses.

Consumer spending, which drives more than two-thirds of economic activity, has remained strong despite a significant slowdown in job growth.

While the labour market has faced challenges in the past few months, especially with stalled job growth, high-income households are still spending actively.

This is largely due to a strong stock market and elevated home prices, which have increased their wealth. In fact, Federal Reserve data showed that household wealth hit a record $176.3 trillion in the second quarter of 2025.

However, not all households are benefiting equally. Lowe

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