Overview
- Bank of America Institute's deposit‑account data show lower‑income after‑tax wage growth accelerated to 4.1% in June, roughly matching 4.2% growth for higher‑income households.
- The bank says the June shift reflects faster hiring and more job switching by lower‑paid workers, which often yields larger pay bumps when workers change employers.
- PNC's customer transaction data find the spending gap between lower‑ and higher‑income households is the smallest in three years, supporting the view that gains are translating into outlays.
- Analysts caution part of the rise in take‑home pay may be mechanical because some workers adjusted tax withholding after the One Big, Beautiful Bill Act, and official BLS payrolls showed only 57,000 jobs added in June.
- The broader K‑shaped pattern persists because most wealth gains from stocks and home equity still flow to affluent households, so the near‑term narrowing may be fragile if labor demand weakens.