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K-shaped economy
Trends
- 1US consumer spending splits along K-shaped economy lines●US consumer spending and the K-shaped economy
PwC is highlighting how US consumer spending is diverging along 'K-shaped' lines: higher-income households continue to spend freely on travel, dining and retail, while lower-income consumers cut back as prices and borrowing costs strain budgets. The firm argues retailers and brands must plan for two very different consumer groups, with value formats serving stretched shoppers while premium segments keep growing.
- 2AI gains bypass traditional industries as K-shaped economy widens●Traditional industries see limited AI gains as K-shaped economy widens: Expert
An expert says the artificial intelligence boom is delivering benefits mainly to tech-focused firms, while traditional industries see limited gains, widening a K-shaped economy in which sectors split between strong growth and stagnation. The observation highlights concerns that uneven AI adoption could deepen inequality across businesses and workers, even as overall economic figures appear resilient.