Consumer sentiment is lower now than when inflation peaked at 9.1% — and the richest 10% of Americans account for half of consumer spending

Although inflation fell from 9.1% in June 2022 to 3.7% in September 2026, the University of Michigan consumer sentiment index has dropped 10% over the past year. Strong aggregate consumption masks substantial inequality: the richest 10% of Americans generate half of spending, while spending by the bottom 80% of earners has fallen behind inflation. Real wage growth between 2022 and the first half of 2026 no longer fully explains weak sentiment because adjusted wages are now declining. This disconnect could shape the midterm elections, with 84% of registered voters identifying the economy as very important to their vote.

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