Where's the prosperity? Middle class Americans aren't feeling it.

Consumer Confidence Trends - Consumer confidence among middle-class Americans has significantly declined, with the University of Michigan index dropping to 55.4 in September from 70.1 a year ago [1] - Morning Consult's daily sentiment index indicates a sharp decline in middle-class consumer confidence during the summer, contrasting with relatively stable views among higher-income Americans [2][3] Economic Challenges for Middle-Class Consumers - Middle-income Americans, earning between $50,000 and $100,000, experienced a drop in confidence from a peak of 113.2 to a low of 99.5 in June, with the index at 98.7 as of mid-September [3] - Retailers report that middle-class shoppers are adjusting their spending habits, with Walmart and Kohl's noting that lower- to middle-income customers are trading down to cheaper products [6][7] Factors Contributing to Economic Anxiety - Economic anxiety among middle-class consumers is attributed to inflation, tariffs, and a softening job market, with economists noting that multiple factors are at play [8][9] - Despite some middle-income households benefiting from rising property values, their incomes and spending have not kept pace with inflation since the pandemic [16] Disparities in Wealth and Spending - The wealthiest 10% of Americans account for over 49% of consumer spending, with upper-income Americans benefiting significantly from rising asset values [12][15] - A two-tiered economy is emerging, where upper-income households thrive while middle-income families face financial challenges [13] Job Market Concerns - The job market is showing signs of weakness, with only 22,000 jobs added in August and a rise in unemployment to 4.3%, the highest since October 2021 [18] - Middle-income families are more reliant on a strong labor market, and current job market conditions are causing increased anxiety about job security [17]