U.S. higher-income households show weaker consumer sentiment as spending risks rise

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U.S. high-income sentiment weakens

Highlights

Morning Consult data shows higher-income households' improving-finances sentiment fell from 45.2% in mid-2025 to 30.2% by October 26.
Bank of America Institute reports year-over-year spending growth among the highest third of earners has slowed since June, converging with middle-income trends.
Half of households earning over $155,600 now identify as working class, with affordability pressure and energy-driven inflation raising political risks ahead of midterm elections.

Income trends and spending signals

As reported by Business Insider, Morning Consult's weekly tracking shows households earning $100,000 or more have seen sentiment fall to its lowest level in months. Late in the summer of 2025, 45.2% of six-figure earners said their finances were improving, but that share drops to 32.5% at the new year and to 30.2% in the week ending October 26.

Lower-income households continue to feel greater pressure overall, particularly from elevated prices. But the article says middle-income workers are also under strain, citing Pew Research survey findings that many lack emergency savings sufficient to cover three months of expenses, while only 47% say they were able to save money over the past year.

Bank of America Institute analysis also points to softer momentum in spending by the highest third of earners. Year-over-year spending growth for that group has slowed since June and is now closer to the pace seen among middle-income consumers, although the top 5% of earners still post the fastest spending growth in the BofA data.

Affordability pressures and political implications

Economic perceptions among higher-income households are also shifting beyond spending patterns. The article says half of families earning more than $155,600 identify as working class, while higher gasoline and oil prices are adding pressure as inflation remains driven largely by energy costs.

A broader U-shaped pattern is also emerging in household finances, with both high- and low-income earners more likely than middle-income households to say they are living paycheck to paycheck. For higher earners, rising costs and lifestyle creep appear to be contributing to that view.

That deterioration in sentiment could carry political weight as contested midterm elections approach in swing states. Affordability remains a central voter concern, and growing dissatisfaction among six-figure earners with government economic policy may give candidates focused on lowering prices a more energized bloc of voters.

Our earlier article on surging oil and gas prices during the U.S.-Iran war explained how the jump in crude, diesel and European gas was strengthening cash generation for major international oil companies. We noted that many firms were sticking to capital discipline—channeling windfalls into debt reduction and shareholder returns—while holding back on major new investment until prices retreat and stabilize.

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