What happened to the middle class? Retail, auto sales, job numbers... [View All]

[Keirsey]

Retail, auto sales, job numbers suggest tougher times
The recent spate of sales figures and job numbers underscore an emerging picture for the economy: the gap between the haves and the have-nots is widening amid a draining of the middle-income ranks.

"The longer-term pattern is that the rich are getting richer," said Standard & Poor's Chief Economist David Wyss. "It's not so much that the poor are getting poorer, but there's a hollowing out of the middle class."

As fortunes improve for certain sectors of the population, so too do their tastes for autos, apparel and home furnishings to leisure and hospitality choices, leading to a "buying up" to better and higher-priced merchandise and experiences.

At the same time, the higher prices at the gas pump and for home energy bills are pinching the monthly budgets of lower-end consumers -- and ultimately showing up in receipts at the retailers who cater to them.

CBS Market Watch

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