Five Forces Shaping the Financial Middle Three Economies Emerge 20.1 points on the PYMNTS Consumer Expectations Index (PCEI) separate the strongest and weakest groups of consumers. The middle segment scores higher than neutral but remains between consumers with room to spend and those struggling with bills. (function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})(); Income Masks Strain Nine percent of households with annual incomes between $100,000 and $150,000 who live paycheck to paycheck do so out of financial necessity. A six-figure income can still leave little room after household commitments. The reported share was 19% at the end of 2025. Even basic expenses can break a budget. (function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})(); Middle Loses Ground Eighty-one percent of paycheck-to-paycheck households that are newly struggling with monthly bills came from consumers who previously lived paycheck to paycheck without issues paying bills. Most households entering a lifestyle of payment difficulty had previously kept up with their bills while living paycheck to paycheck. (function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})(); Savings Separate Outcomes Sixty-two percenet of households who lived paycheck to paycheck without issues paying bills and who report financial improvement hold more than three months of savings. That compares with 46% whose financial lifestyle held steady and 26% whose situation worsened. (function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})(); Payment Choices Diverge Thirty-five percent of struggling households facing an emergency already carried a credit card balance. Among households facing a major unexpected expense, struggling consumers used cash less often and carried credit card balances more often than those not living paycheck to paycheck. (function(){function e(){window.addEventListener(`message`,function(e){if(e.data[`datawrapper-height`]!==void 0){var t=document.querySelectorAll(`iframe`);for(var n in e.data[`datawrapper-height`])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data[`datawrapper-height`][n]+`px`;i.style.height=a}}})}e()})(); Methodology “The E-Shaped Economy: What Keeps the Middle Standing” is based on data from the PYMNTS Consumer Expectations Index.

Source: pymnts.com