The latest state data shows Iowa consumers are spending more this year. Total sales and use tax payments to the state were up 3% through October compared to the first 10 months of 2024.
Creighton University economist Ernie Goss said there’s a pretty clear division, however, between which households are driving a surge in retail sales. “Those on the higher end are doing quite well, those that hold assets like stock, for example, bonds and so on, they’re doing much better and their buying is up,” Goss said. “Of course what’s happened is the stock market, equity markets and other asset markets — gold, silver and so on — those have held up remarkably well and moved higher and those individuals and families that hold those assets, their buying has held up really well.”
Goss said while middle and lower income Americans continue to spend on food, utilities and other essentials, they are pulling back on discretionary spending for things like concerts, vacations and high-end electronics. About half of total spending in the United States comes from households making at least $250,000 annually. Goss said new data suggests many upper income Americans have changed where they shop, however. “What we’ve seen is higher income buyers, instead of shopping at some of the fancier places, they’re moving to Walmart, Target and others,” Goss said…