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K-Shaped Economy Begins to Converge | Raleigh News

K-Shaped Economy Begins to Converge | Raleigh News

Published 4 days, 8 hours ago
Description

The U.S. economy’s long-standing K-shaped divide is starting to narrow, as Bank of America reveals a surprising shift: lower-income households are now outspending middle-income ones, fueled by stronger wage growth. While top earners still lead in spending thanks to soaring stock markets, overall consumer growth has slowed — from 6% in June to 5% in July — as temporary boosts fade and essentials like gas eat into budgets. This emerging “Great Convergence” signals a more balanced recovery, but the very wealthy remain insulated, riding the equity wave with bigger splurges on goods and lodging.

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