Americans are experiencing the economy in strikingly different ways — and much of that divide appears to depend on how much they earn. Recent data reveals a growing economic split among income groups, with higher earners feeling confident about their financial future while lower-income households continue to struggle.

According to JPMorgan’s latest Cost of Living Survey, wealthier Americans expressed noticeably stronger optimism about the economy over the next year. Since the presidential election, their confidence levels have risen, suggesting that income is playing a major role in shaping how people perceive the country’s financial landscape.

Economists have described this trend as a “K-shaped” economy — a pattern in which prosperity rises for some while others face increasing hardship. In simple terms, the wealthy continue to spend and invest, while lower earners battle high prices, shrinking savings, and stagnant wages.

JPMorgan consumer analyst Matthew Boss explained that the survey showed a clear split in sentiment. On a 10-point scale measuring confidence, high-income respondents gave an average score of 6.2, with more than half rating their outlook between 7 and 10. This group remains optimistic about both their financial health and the broader economy.

By contrast, low-income consumers reported an average confidence score of 4.4, with fewer than one in four rating their outlook above a 7. The 30-point gap between these groups paints a vivid picture of an uneven recovery that continues to benefit higher earners disproportionately. Across all income levels, the national average confidence rating stood at 4.9, showing that most Americans remain cautious despite some positive economic indicators.

The divide becomes even clearer when consumers are asked about their ability to pay monthly bills. Nearly 60% of high-income participants said that covering expenses had become easier over the past six to twelve months. However, only 37% of middle-income and 30% of lower-income respondents said the same.

Spending habits are also diverging. Higher-income consumers are more inclined to increase their purchases of nonessential items in the coming year, while middle- and lower-income households are tightening their budgets, prioritizing essentials and debt payments.

These findings from JPMorgan align with similar patterns observed by other research institutions. The University of Michigan’s monthly consumer sentiment survey has tracked this widening gap for the past two years, reporting that the top third of earners consistently show about 25% higher confidence than the bottom third.

The Michigan survey, which gathers opinions from around 1,000 American households each month, most recently conducted interviews between July 29 and August 25. Its data confirms that the nation’s economic optimism remains largely concentrated among those with higher incomes.

The takeaway is unmistakable: while the economy on paper appears strong — with steady job growth, cooling inflation, and rising stock markets — millions of Americans aren’t feeling the benefits. Instead, they’re facing rising costs for essentials like food, housing, and healthcare.

The growing gap in consumer confidence serves as a reminder that aggregate statistics don’t always capture real-world experiences. For some, the current economy represents stability and opportunity; for others, it’s a daily challenge just to stay afloat.

As the U.S. moves closer to another election year, these contrasting perspectives on financial well-being may play an even larger role in shaping the nation’s economic and political landscape.