President Donald Trump’s economy has posted faster than expected growth in his first year back in office, powered largely by strong consumer spending and rising asset values.
But new data suggest that much of that momentum is coming from America’s wealthiest households, even as many voters report growing pressure from living costs and borrowing rates.
The divergence has created a mixed economic picture headline growth numbers remain robust while confidence among lower and middle income households lags, raising questions about how broadly the benefits of the Trump economy are being felt.
According to an analysis by the Royal Bank of Canada, the top ten percent of US earners spent $20.3 trillion through the first half of 2025, nearly matching the $22.5 trillion spent by the remaining ninety percent of households combined.
The surge has been fueled by a strong stock market, elevated home values and faster income growth among affluent consumers.
The Commerce Department reported Tuesday that the US economy grew at a 4.3 percent annual rate in the third quarter, driven largely by personal consumption. Trump highlighted the figure as evidence that the “Trump Economic Golden Age” is accelerating.
Some economists argue the Trump economy reflects traditional markers of strength, including rising corporate profits and active capital markets. Corporate profits rose by more than $166 billion in the third quarter, following a modest increase earlier in the year.
“This is an economy that looks strong from a macro perspective,” said Alan Hoffman, an economist at Georgetown University. “Growth, profits and investment are all moving in the right direction.”
Others caution that the distribution of gains remains uneven. Stephen Moore, a former Trump adviser, said the concerns around affordability are overstated given current growth trends.
“I think the economy is objectively strong,” Moore said. “If these trends continue, it becomes harder to argue that the economy is weak.”
Bank of America data show that top account holders saw take home pay rise four percent over the past year, compared with one point four percent growth for lower income households.
While spending among lower income consumers remains positive, it has slowed relative to wealthier peers.
The Federal Reserve Bank of Boston reported that low income households now carry substantially higher credit card debt than before the pandemic.
Unemployment edged up to four point six percent last month, adding to concerns about job security.
Despite strong consumer balance sheets overall, the JPMorganChase Institute found income growth was weak in 2025, particularly among older workers, with account balances largely flat.
In Palm Beach County, Florida, business leaders remain optimistic. “It feels like the Roaring Twenties here,” said Douglas Evans, president of the Palm Beach Chamber of Commerce.
“Tourism is strong and luxury spending has not slowed.” That optimism is not universal. In Dayton, Ohio, retail worker Maria Lopez said higher wages have not kept pace with expenses.
“My paycheck is a little bigger, but groceries, rent and credit cards cost more,” Lopez said. “It doesn’t feel like a boom where I live.” Federal Reserve Gov. Christopher Waller echoed those concerns at a recent business conference in New York.
“Financial conditions are loose at the top,” Waller said. “But for Main Street, borrowing is expensive and budgets are tight.” Administration officials say upcoming tax measures could broaden the gains.
Proposed deductions for hourly workers and businesses are intended to boost hiring and wages. Officials also point to expanded retirement investment options and new Trump branded investment accounts for newborns as long term tools for wealth building.
Treasury Department counselor Joseph Lavorgna said easing inflation could lift real wages across income groups. “If inflation continues to fall, purchasing power improves,” Lavorgna said. “That supports a more durable Trump economy.”
Still, analysts warn that consumer spending could soften if job growth slows further. The American Financial Services Association has said lenders are preparing for higher delinquencies among subprime borrowers.
The Trump economy has delivered strong growth and rising asset values, driven largely by high income households and investment activity.
At the same time, surveys and lending data indicate persistent strain among many lower and middle income Americans. As policymakers look ahead, the challenge remains whether economic expansion can translate into more evenly shared gains.
