Equifax indicates that for the first time in three years, there has been no further widening of the gap within the K-shaped economy. The index continues to track three consumer groups – Thrivers (with an index above 80), Middle (with an index between 50 and 79), and Strivers (with an index of 49 or below) – and these three groups are experiencing different financial realities.

"Since the onset of the COVID-19 pandemic, we have been closely observing the K-shaped economy. Over the past three years, we have seen the gap between the upper and lower ends of the 'K' continue to widen, while the middle class has shrunk. In the second quarter of 2026, this pattern paused," said Emmaline Aliff, the head of consultants at Equifax. "The Middle group has slightly expanded, the Striver group has shrunk, and the Thriver group has grown. One quarter does not constitute a trend, but this is the first time in a considerable period that we have observed some improvement."

Economic divergence pauses

The changing trends of the three consumer groups Market Pulse Index are opposite to those of recent quarters. The high-end Thrivers group has grown by 3.2%, the Middle group, which represents nearly 70% of the US population, has expanded slightly by 0.9%, while the Strivers group, which is more sensitive to the economy, has contracted by 4.2%, marking the largest decline for this group since the fourth quarter of 2023.

Assets remain the clearest demarcation line.

Assets, rather than income or credit, remain the clearest demarcation line between different groups. Here, assets are defined as savings or other sources of wealth that can be used to meet pending payment needs or repay debts when necessary. Nearly 78% of Thrivers are considered to be Affluent, holding assets of over one million US dollars, which constitute a strong economic barrier. In contrast, over 97% of Strivers belong to Mass Market, with assets below 100,000 US dollars, and no one is classified as Affluent.

Middle The wealth composition of this group is the most diverse. Approximately 32.4% of American consumers belong to Mass Affluent households, with assets ranging from $100,000 to $1 million, and they fall within the Middle group. Within this specific group, the proportions of Mass Affluent and Mass Market are 46.8% and 42.9%, respectively, which is quite close. Households with similar asset levels may fall on different sides of Middle due to differences in credit, debt, and income.

Comprehensive improvement across generations

Since the third quarter of 2025, the Market Pulse Index value has risen for the first time across all age groups, and the proportion of Strivers in four of these groups has decreased:

• Millennials lead the overall population, with a quarterly growth of 1.0%, and the average index has risen to 58.7. Moreover, their Striver proportion has seen the largest decline, dropping by 1.4 percentage points. Millennials remain the largest generational group within Strivers, accounting for 35.7% of that group.
• Generation Z saw a 0.6% increase, with an average index reaching 59.3, continuing the trend of stable integration into the workplace and financial growth. Generation Z exhibited the highest growth rate among all generations in Thrivers, with an increase of 0.7 percentage points.
• Generation X has seen a 0.8% increase, with an average index of 60.8; they continue to seek a balance between debt and basic living costs during their peak career years.
• Boomers remains the most financially stable group, with an average index of 64.5. Their asset buffers support the middle and upper layers: Boomers accounts for 36.6% of Middle and 47.8% of Thrivers, making them the largest generational group among these two groups.

Emotions and Reality: Feelings Do Not Match Financial Changes

The consumer sentiment measured by the University of Michigan Consumer Survey dropped to 49.5 in the second quarter, hitting the lowest level since the survey began. However, this sentiment does not correspond with the actual financial changes experienced by consumers during that quarter: despite the continued decline in sentiment, Market Pulse Index increased slightly, and the proportion of overdue debt payments improved from 2.1% to 1.9%.

Credit behavior does not equate to financial capability.

In addition, the latest Market Pulse Index data once again indicates that consumers' financial situations are not equivalent to a single credit score. The proportion of high-quality borrowers (with scores ranging from 661 to 780) is almost identical across different groups: Strivers at 30.0%, Middle at 30.7%, and Thrivers at 23.9%.

At the same time, 9.3% of Thrivers have a credit score below 660, while 43.5% of Strivers possess a credit score of prime or super-prime (ranging from 781 to 850). A good repayment record is quite common across the United States, and the super-prime group accounts for 38.4% of the total US population.

The main difference between Strivers and the others lies in tight budgets and a lack of assets, rather than an inability to fulfill credit obligations: 81% of Strivers have annual incomes below $65,000, making them highly sensitive to price changes, whereas nearly 88% of Thrivers have annual incomes exceeding $100,000.

Equifax Market Pulse Index presents a comprehensive view of the financial health of American consumers by integrating anonymized credit, debt, income, and asset data, combined with VantageScore credit scoring insights. This index is designed to capture the combined effects of various economic forces, rather than focusing on a single variable. It is measured on a scale from 1 to 100, where 100 represents the strongest financial strength, enabling precise comparisons between different demographic and generational groups and providing an overall picture of consumers' economic well-being.

Equifax Market Pulse Index is built using AI and machine learning methods, leveraging Equifax's proprietary wealth and asset data, as well as Equifax credit profiles and VantageScore 4.0 credit scoring data to provide a comprehensive view of consumers' financial health. It consolidates American consumers' credit, debt, income, affordability, and assets into a benchmark value that reflects a cumulative index of both positive and negative financial factors. For more information, please read the full Market Pulse Index.

Regarding Equifax Inc.

Equifax ( NYSE : EFX ) signifies that the company believes in knowledge driving progress. As a global leader in data, analytics, and technology, Equifax plays a vital role in the global economy, helping financial institutions, enterprises, employers, and government agencies make critical decisions with greater confidence. The company's unique combination of differentiated data, analytics, and cloud technologies drives insights and supports decision-making, helping people move forward. Equifax is headquartered in Atlanta and employs nearly 15,000 people worldwide, with operations or investments in 24 countries across North and South America, Europe, and the Asia-Pacific region. For more information, please visit Equifax.com.

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Tiffany Smith for Equifax

SOURCE Equifax Inc.