Core Insights - Despite geopolitical strife and economic instability, consumer spending remains strong, accounting for nearly 70% of the United States GDP [3] - The current economic environment is characterized as a "Yes, But" economy, where consumers feel secure enough to spend but are also anxious about their financial situations [2] Consumer Spending and Financial Health - Median household incomes have been stable for a decade, and household net worth has increased by 30% since the pandemic, yet the top 10% of earners account for nearly half of all consumer spending [3] - Middle-income households have declined from 61% in 1971 to 51% in 2023, while debts such as credit cards and student loans are rising [3][4] Consumer Stress and Economic Perception - The Kearney Consumer Institute's Q3 2025 update indicates that personal finances and geopolitical factors are the top stressors for consumers, with a 10% increase in stress levels compared to the previous year [5] - 59% of Americans find the current political division distressing, a 17% increase from 2024, reflecting concerns over government stability and economic policies [6]