‘Pivotal warning’: Richest Americans slash spending in sign of coming turmoil

Even America’s wealthiest people are cutting back on their spending amid uncertainty over the nation’s economic future, a report claimed Monday.

“Strikingly, economists say Americans of all income levels, including the wealthiest, are rethinking their spending — in what could be a pivotal warning,” the report in The Washington Post claimed.

“The drop-off in consumer spending is expected to drag down economic growth in the first three months of the year, with many economists now forecasting a contraction after years of consistent growth."

“The highest-earning 10 percent of Americans, with annual household incomes of $250,000 or more, have been driving much of the economy’s post-pandemic boom, accounting for 49.7 percent of all U.S. spending, according to calculations by Moody’s Analytics for the Wall Street Journal.”

The report claimed a plunge in stock prices, together with threats of a trade war as President Donald Trump floats plans to impose tariffs, has caused “well-heeled shoppers” to cut back.

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Among spending affected are luxury items — vacations, dining out, jewelry and cosmetic surgery.

“The forces driving Americans’ recent wealth gains 'are under considerable risk of slowing or reversing,'" Moody's Analytics' chief economist, Mark Zandi, wrote in a recent report, according to the Post.

And EY-Parthenon economist Lydia Boussour said, “Consumers are increasingly apprehensive about spending.

“We are seeing clear signs that people are being more careful — they’re reluctant to spend on nonessential expenses. They’re worried about inflation and have preemptive anxiety around tariffs.”

Plastic surgeon Johnny Franco told the Post from his Texas office that patients are opting for smaller procedures and choosing local anesthesia, rather than the more expensive option of being put under.

“There’s only so much money to go around for our patients,” he said. “A lot of them are breaking up their surgeries — maybe a breast lift instead of a full ‘mommy makeover,’ or fillers instead of liposuction. They’re able to save a decent amount of money.”