Shoppers look at fruit on sale at Frank’s Quality Produce Company at Pike Place Market on Wednesday, May 28, 2025 in Seattle, Washington, USA.
M. Scott Braugher | Bloomberg | Getty Images
Data shows that Americans have vastly different views about the economy, and that divergence is driven in part by income bracket.
JPMorgan’s Cost of Living Survey found that higher-income consumers were more likely to report stronger economic confidence when asked to think about next year in light of post-election changes.
The announcement adds to a growing body of qualitative and quantitative evidence that the U.S. economy is “K-shaped” (a term economists use to describe the skewed economic experience by income). In other words, it explains why wealthy Americans continue to spend while lower-income people succumb to inflationary pressures.
“The survey results indicate a noteworthy juncture,” JPMorgan’s Matthew Vos, a widely followed and respected consumer analyst, wrote in a Tuesday note to clients.
On average, high-income respondents rated their self-confidence at 6.2 out of 10 (10 being the best). More than half of this group selected a rating between 7 and 10, highlighting a rosy financial outlook.
Meanwhile, low-income consumers reported an average score of 4.4. Voss noted that less than a quarter of participants in this category provided a score of 7 to 10, creating a 30-point difference between these groups.
Across income brackets, the average respondent rated their confidence level at 4.9 out of 10.
This income-based segmentation was prevalent again when consumers were asked about their confidence in being able to cover their monthly bills compared to six to 12 months ago.
Nearly 6 in 10 high-income consumers said it has become easier or more affordable to pay these bills. However, only 37% and 30% of middle-income and low-income groups, respectively, said the same.
According to the JPMorgan survey, respondents in higher income brackets were more likely than other groups to say they planned to increase their spending on non-essential goods over the next year.
JPMorgan is not alone in recognizing the disparity between income groups when it comes to the economic outlook.
Over the past two years, the average consumer sentiment rating for the top third of income earners has been approximately 25% higher than for the bottom third, according to the University of Michigan’s monthly consumer survey.
The latest results from the Michigan survey reflect interviews conducted from July 29 to August 29. 25 of a statistically representative sample of approximately 1,000 American households.
