AS SPENDING BY WEALTHY WEAKENS, SO DOES ECONOMY

Consumer Behavior Of Wealthy Acts As A Bellwether For The Economy

WASHINGTON (AP) — Wealthy Americans aren’t spending so freely anymore. And the rest of us are feeling the squeeze.

The question is whether the rich will cut back so much as to tip the economy back into recession — or if they will spend at least enough to sustain the recovery.

The answer may not be clear for months. But their cutbacks help explain why the rebound could be stalling. The economy grew at just a 2.4 percent rate in the April-June quarter, the government said Friday, July 30, much slower than the 3.7 percent rate for the first quarter.

Economists say overall consumer spending has slowed mainly because...