Strong spending is obscuring an economy that isn’t working for many Americans

Even after years of inflation, geopolitical chaos and recession in Europe, the US economy remains robust and resilient. But many middle class Americans are cutting spending.

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. Even after years of inflation, geopolitical chaos and recession in Europe, the US economy remains robust and resilient. The reason for that is mostly the American consumer, with spending accounting for about 70% of gross domestic product. But some observers now worry that the economy represents a tale of two Americas. Some businesses and consumers continue to thrive, while others are falling by the wayside. What’s happening: Economic activity in the US remains relatively strong, but there are some signs that the momentum is beginning to cool. Unemployment rose to 3.9% last month, lower-income consumers are spending less and businesses are limiting employee hours and pay. Consumer growth in general is beginning to moderate, but gently.