RICH Americans are curtailing their spending ahead of Black Friday, a worrisome sign for an economy that has so far depended on the US consumer to stave off a recession. In the three months ahead of the all-important holiday shopping season, a group of retailers that cater to the upper middle class – including Apple, Coach and Nordstrom – saw its biggest sales drop in two years, according to an exclusive analysis of Bloomberg second measure data.
The malaise also hit top-performing malls in wealthier areas, even as overall retail-sales figures march higher. Despite record interest rates and soaring inflation, the upper middle class “had been driving a lot of the stronger-than-expected spending,” says Kayla Bruun, a senior economist for Morning Consult, a survey research firm. Now, people with at least US$100,000 in household income are starting to become more frugal, she say