A K-shaped U.S. economy—where wealth continues to concentrate at the top while the bottom half struggles—is leaving its mark on American businesses, with luxury and high-end discretionary spending rebounding even as mass-market consumption weakens and consumer sentiment plummets to recessionary levels.
According to Bank of America card data, U.S. luxury spending rose 4% year-over-year in October, a five percentage point improvement from the third quarter's 1% contraction. Jewelry spending was especially strong, accelerating from 10% in the previous quarter to 16% last month—the highest growth rate across all tracked categories.
