Recovery for the rich

Upper-income Americans spent an average of $145 a day in May, which is the highest monthly average since November 2008. But middle- and lower-income Americans say their spending has been relatively flat over the last few months. These results, reported by Gallup, are another sign that consumer spending, while up overall, is highly segmented by age and income. (Spending was highest among older Americans.) Gallup chief economist Dennis Jacobe offers some explanations (from the NYT):

It could be that many upper-income consumers are experiencing "frugality fatigue." That is, they are simply tired of cutting back and want to go back to spending -- maybe not as freely as they did prior to the recession, but at higher levels than they did last year, when frugality was commonplace. They may also be spending more freely because as recently as a month ago, many economic observers were talking about the financial crisis' being over and a sharp economic upturn taking place. Or, they may simply have decided that it is finally time to take a long-delayed vacation.

By the way, the Dow gained 273 points, which would normally provide additional comfort to older, richer Americans wanting to spend. But today's gains are only the latest in a series of sharp ups and downs that's bound to create more anxiety about where Wall Street (and thus their money) is headed.