Read our full analysis for a more in-depth look at these trends.
Middle income, major impact
Despite higher prices, middle-income households continue to fuel growth across essential and discretionary categories.
July 2026
Key takeaways
- According to the US Census, middle-income households' share of total spending is much closer to their share of the population than lower-income households' spending share. In fact, middle-income families' spending contributed nearly a quarter of US GDP in 2024. Meanwhile, Bank of America card data suggests their spending growth has remained resilient since mid-2024.
- Additionally, middle-income households generate about one-third of spending at grocery stores, restaurants, hobby shops and general merchandise retailers. Meanwhile, their spending growth has been especially strong in airlines and jewelry in Q2 2026.
- And while inflation outpaced after-tax wage growth for middle-income households in June 2026, spending remains solid. Rising wages have more than offset higher gasoline costs, helping consumers continue spending on both essentials and discretionary items.
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