NEW YORK — A widening divide in household income is driving sharply different financial outlooks among U.S. consumers, with higher earners expressing sustained confidence while lower-income households remain below neutral sentiment levels, according to a new report.
The report, Income Divides: A Deep Dive on Household Income Differences in U.S. Consumer Expectations, is based on the PYMNTS Intelligence’s Consumer Expectations Index and found that income is the dominant factor shaping how Americans view their financial lives, outweighing broader perceptions of the economy or job market.
According to PYMNTS Intelligence, a 15-point confidence gap separates households earning more than $150,000 annually from those making less than $50,000, a divide that has persisted for at least five consecutive months.
- Households earning $150,000 or more recorded an index score of 63.1, indicating positive sentiment.
- Those earning under $50,000 posted a score of 48.0, below the neutral benchmark of 50.
- Middle-income households fell between those extremes, with sentiment generally in the mid-50s range.
Two Different Realities
PYMNTS Intelligence said the findings suggest Americans are experiencing “two different financial realities,” with income level acting as the primary fault line in consumer expectations.
The Consumer Expectations Index measures sentiment across three categories:
- Personal financial resilience, including savings capacity and ability to absorb shocks
- Macroeconomic and buying climate, including perceptions of whether it is a good time to make purchases
- Labor market security, including confidence in income stability and job prospects
Across all three dimensions, higher-income households consistently reported stronger confidence, while lower-income consumers indicated limited financial buffers and reduced ability to withstand disruptions, according to PYMNTS Intelligence.
A Key Question
The report also found that sentiment alone does not fully explain spending behavior. Instead, PYMNTS Intelligence said the key question for businesses is whether consumers have the financial capacity to act on their confidence, pointing to factors such as savings, debt levels and income stability as critical constraints.
More broadly, the analysis underscores what PYMNTS Intelligence described as a “capacity gap” in the U.S. economy, where demand may exist but is limited by financial constraints among lower-income households.
The findings are based on a monthly survey of a nationally representative sample of U.S. adults conducted in February 2026, PYMNTS Intelligence said
