U.S. economy may be holding steady overall, but the financial divide is getting harder to ignore. Higher-income households are spending more and seeing stronger wage growth, while lower-income households are increasingly feeling left out, according to recent data from the Bank of America Institute.

Widening Gap In Spending And Wages

According to the institute’s August “Consumer Checkpoint: Gains and Gaps” report, credit and debit card spending per household rose 1.8% year over year in July, the highest growth rate since January. Seasonally adjusted spending was also up 0.6% month over month. However, not all groups contributed equally to that growth.

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“Lower-income households aren’t really spending,” Bank of America Institute Senior Economist David Tinsley told Fortune. According to the report, their spending was flat in the three months to July, while higher-income households increased spending by 1.8% and middle-income households by 1% year over year.

That gap reflects what’s happening with wages. Wage growth for lower-income households fell to just 1.3% in July, down from 1.6% in June. In contrast, wage growth for higher-income households rose to 3.2%, its third straight monthly increase.

“The divergence is quite stark,” Tinsley told Fortune.

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Companies Adjust Strategy To Follow The Money

As a result, many businesses are now shifting focus to customers who continue to spend: wealthier consumers. From luxury airline suites to upscale fast-food menu items, the strategy is clear.

“We’ve been upleveling the brand,” Walmart (NYSE:WMT) Chief Financial Officer John David Rainey told Fox Business earlier this year, noting the retailer has been adding premium brands like Apple (NASDAQ:AAPL) and Bose while remodeling hundreds of stores. Walmart has also gained market share among higher-income households, a point mentioned in back-to-back earnings calls.

Airlines are also investing heavily in high-end travel experiences. In May, United Airlines (NASDAQ:UAL) introduced new luxury business class suites featuring caviar service, part of an industry-wide race to win over wealthier leisure travelers.

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Caution Ahead For The Broader Economy

While middle- and higher-income consumers currently make up the bulk of U.S. consumer spending, lower-income households still play a crucial role in high-volume sectors like discount retail, fast food and budget travel.