K-shaped economy is still 'firmly intact,' Moody's economist says |
K-shaped economy is still ‘firmly intact,’ Moody’s economist says
(NewsNation) — High earners continue to drive spending as the K-shaped economy remains “firmly intact,” according to Moody’s Analytics chief economist Mark Zandi.
Americans in the top 20 percent by income — those earning more than $175,000 a year — account for nearly 60 percent of outlays, an “astounding” share, Zandi wrote online, citing an updated estimate for the first quarter of 2026.
Personal outlays include consumer spending, interest payments on installment debt like car loans and transfers such as donations.
The top 20 percent increased outlays by 6.5 percent over the past year, outpacing inflation, Zandi found. Meanwhile, outlays by those in the bottom 80 percent fell short of inflation, rising just 2.6 percent.
“No wonder most Americans are upset with their financial situations and the broader economy,” Zandi wrote.
The so-called K-shaped economy, a reference to........