K-shaped Economy: U.S. Consumers Question Comfort as Spending Shifts Across Income Levels

February 11, 2026 — A Kearney Consumer Institute report reveals that U.S. consumers increasingly question whether they live comfortably as the K-shaped economy deepens. About 24,000 consumers globally and 2,000 in the U.S. were surveyed. Lower-income households are cutting essentials and splurging on experiences, while higher earners trade down groceries and face lifestyle creep, over-leveraging, and geographic exposure. Middle-class consumers report fragility at both ends of the K, with many describing themselves as “on thin ice.” Expectations of a traditional middle-class life—housing, saving for a home, having kids—are being reevaluated as inflation and hiring slows. The report also notes broader inflation in home size, décor, technology, and clothing, with consumers shopping across all price tiers rather than fitting a single-average consumer model.