Economic Outlook for Middle-Income Americans - Middle-income Americans are experiencing increased pessimism regarding their financial prospects, with only 21% believing they will be better off in the next year, compared to 34% who expect to be worse off [1] - This pessimism marks a significant decline from 2020, when 33% anticipated improvement in their financial situation [2] Financial Health Indicators - The percentage of middle-income households rating their finances as "poor" or "not so good" has risen from 32.2% in Q1 2021 to 45.5% in Q3 2025, peaking at 55% in Q3 2024 [5] - The proportion of respondents who pay off their credit card balances in full each month has decreased from approximately 47% in Q1 2021 to 29% in Q3 2025 [6] Inflation Impact on Household Budgets - Costs for necessities such as food, gas, and utilities have increased by 32.7% since January 2021, outpacing the 23.5% rise in middle-income wages during the same period [9] - Households are responding to financial challenges by deferring major purchases, tapping into savings, or increasing credit card debt, which may have long-term implications for their financial goals [10] Stress Factors for Middle-Income Households - Inflation is a significant source of stress for 55% of middle-income respondents, while 47% are concerned about covering emergency expenses [14] - Other stressors include debt (46%), monthly bills (42%), and the ability to enjoy day-to-day life [15]