America’s “K-shaped economy” is showing up at the gym

Americans’ biceps are getting bigger. Their wallets? That depends which side of the income ladder they’re on.

Two of America’s largest gym chains, Life Time and Planet Fitness, recently reported earnings that highlight a widening divide in consumer spending habits among Americans.

Both chains reported strong growth in 2025, but their customer bases are heading in opposite financial directions:

• Life Time’s revenue jumped 12% as affluent members splurged on in-house training, spa treatments, and dining.
• Planet Fitness also saw strong growth, but a weaker 2026 outlook raised concerns about slowing demand among lower- and middle-income Americans.

The split doesn’t stop at the squat rack. McDonald’s and other fast food joints have seen lower-income traffic slip in recent months, pushing more value meals back on the menu, while airlines are investing in more premium features like first-class seats due to increased demand among affluent travelers.

A new trend takes shape

Experts are calling the current situation a “K-shaped” economy, where high earners continue to spend and earn strong investment returns, while lower earners face increased economic hardship.

And it shows up across a wide range of recent economic data:

• US GDP growth has been solid in recent years, yet hiring has slowed while the unemployment rate ticked up.
• Overall consumer spending is still rising, thanks largely to higher earners, but confidence in the economy remains low among Americans, and auto loan and credit card delinquencies recently hit a ~15-year high.
• The stock market still hovers near record highs, while wage growth among Americans is slowing.

Bottom line: Analysts warn that if these trends persist, the K-shaped recovery could deepen social divides and make it harder for middle- and lower-income Americans to bounce back from economic shocks.