Citizen K.

After the short-lived but intense Covid recession, the notion of a K-shaped recovery became popular, describing the gap between sectors that were rebounding strongly and others that were struggling. There are similarities today with the components of demand growing at different rates. It's easy to talk about the US consumer as if he or she were a homogenous entity, but in reality there are significant differences depending on income level, area of activity or place of residence. There are those who are benefiting from a strong wealth effect, and those who are feeling the effects of weakening job conditions amid inflationary pressures. These gaps cannot be sustained indefinitely.