Jan 24, 2024 - Business
High-income Americans are feeling really great
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Consumer sentiment rose across income groups in January — and it surged the most among those earning more than $100,000, according to Morning Consult polling out Wednesday morning.
Why it matters: It's just the latest sign of a turnaround in Americans' dour economic mood.
Zoom in: Sentiment among the highest earners, in particular, is highly correlated with the stock market. And the S&P 500 has been on a tear lately — just hitting a new high.
- Vibes among the $100k+ crowd have also improved because job insecurity has fallen, says John Leer, chief economist at Morning Consult. Fears about layoffs retreated after the end of 2023, he said.
- "And if they're reading the financial news, I think increasingly people are expecting a soft landing," he said.
The bottom line: You don't need an economics degree for this one. Making more money boosts one's mood.
- People in families earning more money are better off financially, so it stands to reason that they're feeling better than everyone else, Leer said.
- The gap in sentiment between high and low earners reflects some "deep underlying economic reality."
