The upper middle class is now the largest income group in the U.S.

MoneyWatch The upper middle class is now the largest income group in the U.S., study finds .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi April 6, 2026 / 4:30 PM EDT / CBS News Add CBS News on Google The U.S. middle class is shrinking, but not because more Americans are poorer. Instead, more households are climbing into the echelons of the upper middle class due to income gains in recent decades, according to research from the nonpartisan American Enterprise Institute. About 31% of U.S. households earn enough to be considered upper middle class, a roughly threefold increase since 1979, making it the nation's largest economic group, the research found. Meanwhile, the share of Americans in the "core" and "low" middle class segments has declined over that time, primarily because more households in those income groups have jumped ahead economically, AEI found. The findings underscore a broader shift in the U.S. economy: As more households move up the income ladder, consumer demand is tilting toward higher-end goods and services. The so-called "K-shaped" economy — in which higher-income consumers are spending more while lower-income households pull back — has become a hallmark of the post-COVID economy."The whole distribution of Americans, from poor to rich, has done better over time. And to the extent that fewer people are within a fixed income range that we might think of as middle class, that's just because everybody's gotten richer over time," Scott Winship, a co-author of the report and a senior fellow at AEI, told CBS News. The analysis, based on U.S...