There’s a shocking disparity between how high income and low income earners feel about the economy
Shoppers look at fruit for sale at Frank’s Quality Products Co. at Pike Place Market on Wednesday, May 28, 2025 in Seattle, Washington, United States.
M. Scott Brauer | Bloomberg | Getty Images
Data shows that Americans have very different views on the economy, and that this difference is driven in part by income level.
Given the changes since the presidential election, higher-income consumers were more likely to report stronger economic confidence readings when asked to look ahead to the year ahead, according to JPMorgan’s Cost of Living Survey.
This explanation adds to a growing body of qualitative and quantitative evidence showing that the U.S. economy is “K-shaped,” a term economists use to describe the bias in economic experiences with income. In other words, this may explain why wealthy Americans continue to spend while lower-income earners are buckling under inflationary pressures.
“The survey results indicated a significant bifurcation,” JPMorgan’s Matthew Boss, a widely followed and respected consumer analyst, wrote in a note to clients Tuesday.
High-income respondents rated their confidence at an average of 6.2 out of 10; 10 was the best. More than half of this group chose a rating between 7 and 10, highlighting that their financial outlook is positive.
Low-income consumers, on the other hand, reported an average score of 4.4. Less than a quarter of respondents in this category gave a score between 7 and 10, which Boss noted created a 30-point difference between these groups.
The average respondent across income groups rated their confidence at 4.9 out of 10.
This income-based distinction is once again more common than it was six to 12 months ago when consumers were asked about their confidence in covering their monthly bills.
Nearly six in 10 high-income consumers say these bills are now easier to cover or are covered. But only 37% and 30% of middle- and low-income groups, respectively, said the same.
High-income respondents are more likely than other groups to say they plan to increase non-essential spending next year, according to JPMorgan’s survey.
JPMorgan isn’t the only organization seeing disparities across income classes when it comes to economic outlooks.
According to the University of Michigan, the top third of income earners reported an average consumer sentiment score nearly 25% higher than the bottom third over the past two years.
