According to a self-reported Gallup poll, upper-income Americans’ discretionary spending averaged $94 per day during the first 15 days of May, which is a drop of 15 percent compared with April and 48 percent from the same period a year ago.
This represents the sharpest year-over-year decline so far this year. Unless there is a change, upscale retailers and sellers of big-ticket items will continue to suffer.
Upper-income Americans, or those who earn $90,000 or more per year, brought May to the lowest average daily spending rate of the year. It is worth mentioning that last year’s numbers were inflated due to relatively large tax rebates, although such rebates were phased out for many high-earning individuals.