Miserable K-shaped economy might actually be fading, as lower-income families bounce back, says Bank of America

A shopper looks at a beverage display June 4, 2026 at the Market 32 Supermarket in South Burlington, Vermont. (Credit: Robert Nickelsberg - Getty Images)

Green shoots are appearing in the spending patterns of lower-income earners, with their consumption tracking up in recent days on goods and services excluding gas. The trend could signal the beginning of the end of the so-called a ‘K-shaped’ economy in which the spending and fortunes of upper-income earners rise, while those of lower earners fall.

Bank of America says card data over the past week is showing rays of optimism that the lopsided K-shaped economy is on its way out: the gap in spending between upper and lower income earners has closed significantly. Wealthier households’ consumption is holding at the same level established in March this year, while poorer consumers are beginning to spend more.