According to the Bank of America's latest data, the credit card spending growth rate of low-income households in the US has now slightly exceeded that of high-income groups. This indicates that the significant “K-shaped” consumption trend of the economy in recent years is being reversed. The Bank of America pointed out in its latest report that this shift in the spending pattern was mainly driven by three core factors: first, strong labor market performance, driving wage income growth for low-income groups; second, falling fuel and other energy prices directly reduced the cost of living pressure on lower-tier consumers; and third, favorable year-on-year base effect. Over a long period of time, the US economy has shown typical “K-type” characteristics, that is, high-income groups support most consumer spending through asset appreciation and wage growth, while middle- and lower-income groups face a double squeeze of inflation and debt. However, the latest data shows that as the wage growth rate of lower-level workers accelerates and the cost of living improves marginally, the consumer confidence and purchasing power of low-income groups are being substantially repaired.

According to the Bank of America's latest data, the credit card spending growth rate of low-income households in the US has now slightly exceeded that of high-income groups. This indicates that the significant “K-shaped” consumption trend of the economy in recent years is being reversed. The Bank of America pointed out in its latest report that this shift in the spending pattern was mainly driven by three core factors: first, strong labor market performance, driving wage income growth for low-income groups; second, falling fuel and other energy prices directly reduced the cost of living pressure on lower-tier consumers; and third, favorable year-on-year base effect. Over a long period of time, the US economy has shown typical “K-type” characteristics, that is, high-income groups support most consumer spending through asset appreciation and wage growth, while middle- and lower-income groups face a double squeeze of inflation and debt. However, the latest data shows that as the wage growth rate of lower-level workers accelerates and the cost of living improves marginally, the consumer confidence and purchasing power of low-income groups are being substantially repaired.