K-Shaped Recovery: Wealth Divide in US Economy

As we wrap up 2025, the US economy is characterized by a stark K-shaped recovery, with top earners thriving while the middle and bottom struggle. Unemployment surged, and consumer sentiment plummeted. Spending patterns reveal a clear divide, with top-income households boosting spending by 4% while the bottom third barely increased. Stock markets soared, further widening the wealth gap. Retailers benefited from this divide, with value-focused chains like Walmart and TJX outperforming. Even dollar stores saw a surge in high-income customers. Tariffs loom large, potentially increasing prices, but stores may hold off until after the holidays. Despite this, third-quarter GDP grew at 4.3% due to strong consumer spending on services. This K-shaped setup keeps the economy humming, but the growing gap shows no signs of shrinking.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.