Southeast Economy Expands Amid Contrasting Consumer Spending Habits

The Southeast economy continued to expand in late summer, but consumer spending habits were starkly divided between affluent households and those of modest means.

A new Beige Book report from the Federal Reserve Bank of Atlanta highlights the contrasts between high-end and low-end consumers. While demand for luxury goods remained strong, with robust activity in high-end dining and experiences, retailers reported that consumers overall sought out value at lower prices by buying more store brands instead of pricier name brands.

Contacts among community service agencies noted that many individuals and families have turned to debt, such as credit cards, payday loans, and 'buy now, pay later' plans, to cover even essential expenses due to rising living costs. This has intensified financial strain among low- and moderate-income groups.