U.S. Corporations Warn of Strain as Income Gap Widens Across Households

A Reuters analysis indicates that rising income inequality is pressuring middle-income consumers as corporations recalibrate pricing strategies amid post-inflation normalization and trade tariffs. Retailers and automakers are reporting weaker discretionary demand while luxury segments remain resilient. Analysts caution that this divergence could slow Q4 consumption growth and challenge the Federal Reserve’s soft landing expectations if wage gains don’t accelerate.