The wealthiest 10% of American households are responsible for most of the money being spent on non-essential goods and services — travel, eating out, clothes, entertainment — according to a report published July 6, 2026, by the Bank of America Institute. The institute tracked this pattern using data from tens of millions of Bank of America customer accounts and credit card transactions Bank of America Institute.

This finding carries real weight for anyone watching the economy or making investment decisions. Here's why: when you see news headlines about retail sales or credit card spending being "strong," that headline number can hide a narrower reality. If only the top earners are doing most of the spending, the economy's health may not be as broadly solid as a simple average would suggest.

The difference matters because spending behaves differently depending on who is doing it. When the wealthy cut back, they often cut back sharply — they can delay a vacation or new car. Middle- and lower-income households have less flexibility; they have to eat and keep the lights on. But when rich households are the main source of discretionary spending, the economy becomes more vulnerable to swings in stock prices and home values, which is where the wealthy hold much of their wealth.

Bank of America built this Institute partly to dig into details like this. The bank's credit card and deposit data updates faster than official government reports on consumer spending, which typically arrive weeks or months later and often get revised. That speed can be valuable to economists and investors trying to stay ahead of the curve.

Why has spending become so concentrated at the top?

The pattern took shape over the past few years, especially after the pandemic. Lower- and middle-income households have faced years of price increases — for food, rent, gas, everything — while their wage growth has been uneven and often lagging. Many also spent down savings built up during lockdowns in 2020 and 2021. That left them with less room to spend on extras.

Higher-income households, by contrast, have had tailwinds. Stock portfolios rose sharply, and homeowners with fixed-rate mortgages locked in lower payments before interest rates climbed. That combination gives them money to spare for the things that aren't essential — the exact opposite of what lower earners are experiencing.

What this means for companies and investors

Companies that depend on discretionary spending — luxury retailers, travel companies, restaurants — face a fundamentally different customer base than those selling basics. If spending is concentrated at the top 10%, those luxury-focused businesses are somewhat insulated from broad economic weakness. But investors should be cautious about corporate commentary claiming "resilient" consumer demand without spelling out which consumers they're talking about. There's a real difference between spending that's holding up across the board and spending that's concentrated among the wealthy.

The policy angle

There's a second layer worth considering. When most discretionary spending comes from the wealthy, economic policy works differently than most people assume. A central bank interest rate cut might boost stock prices, which helps rich households feel wealthier — and spend more. But the same rate cut might not do much for middle-income households if they're renting, carrying debt, or worried about their job. Policy has to hit different parts of the economy in different ways, and this spending concentration exposes how much hinges on capital gains and asset prices rather than employment and wages.

What to make of this data

This Bank of America report is a snapshot from one moment in time — July 2026 — based on one bank's customers. It's a useful data point, but not a forecast. The mix of who's spending and how much can shift quickly with stock market movements, job losses, or changes in tax policy. The bank wisely presents this as a current observation, not a prediction of what comes next.

Anyone trying to understand the U.S. economy should hold this finding alongside other reports on retail spending, employment, and household savings. No single data source tells the whole story, especially not when the economy is this fragmented.