October 15, 2013

GOLDMAN: The Disparity Between High- And Low-Income Households In America Is The Worst We've Seen

From Business Insider

GOLDMAN: The Disparity Between High- And Low-Income Households In America Is The Worst We've Seen
MATTHEW BOESLER OCT. 14, 2013

A quarterly survey of 2,000 U.S. consumers by Goldman Sachs analysts shows that "the bifurcation between the high and low end continues to widen" in America.

"Consumers in $90,000+ households saw increased levels of optimism, while consumers in under-$50,000 households declined," write Goldman analysts Michael Kelter, Ivan Holman, and Harsh Aneja in a new report. "This is, in fact, the widest spread we have seen between these two income groups in our survey."

And according to the survey, it's not just economic optimism that is diverging across income groups: actual spending patterns are as well.

"The total number of consumers who said they spent more in the past three months did tick up in our 3Q survey," say Kelter, Holman, and Aneja. "However, the bifurcation of high vs. low-mid income consumers is clearly evident. Consumers in $90,000+ households reported an increase in spending in 3Q vs. 2Q, while consumers in under-$50,000 households reported a decrease in spending this quarter."

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