11/06/2025

Evidence of K-shaped Economy Is Increasing Everywhere

It means wealthy consumers do well while others may be struggling

Recent earnings reports and consumer data show a bifurcation in the US that experts call a "K-shaped” economy. It means wealthy consumers do well and spend freely while lower- and middle-income people struggle and scrimp.

In the United States' current market realities, that looks like:

• The affluent doing very well along with the booming stock market and the appreciation of their homes in the inventory-crunched real estate market.
• Nearly everyone else faltering due to a shaky job market, high interest rates, and/or inflation.

Some of the Sectors Flashing "K:"

Auto: In September, the cost of a new vehicle passed the $50,000 mark for the first time, according to Cox Automotive's Kelley Blue Book. And repossession volume passing through Manheim, the auction group owned by Cox, was up 12% through the end of September on an annualized basis, according to the Wall Street Journal's deep-dive into the rise of auto repos.

Please select this link to read the complete article from Morning Brew.