James Knightley of Dutch International Group said in a report that despite a strong 4.3% increase in US GDP in the third quarter, the K-type economy is ahead of us. He said that, boosted by high incomes and soaring wealth, the top 20% of households are spending strongly, while the lowest 60% are struggling due to concerns about rising prices caused by jobs and tariffs. “This largely explains why spending remains strong while consumer confidence is so weak.” According to Knightley, this situation is also evident at the enterprise level because capital spending outside of the technology industry has been shrinking for four consecutive quarters, which is a sign of decline. However, he said that since the government and businesses are working hard to win the US battle for AI dominance, spending on high-income households and technology capital spending will still drive growth in 2026.

James Knightley of Dutch International Group said in a report that despite a strong 4.3% increase in US GDP in the third quarter, the K-type economy is ahead of us. He said that, boosted by high incomes and soaring wealth, the top 20% of households are spending strongly, while the lowest 60% are struggling due to concerns about rising prices caused by jobs and tariffs. “This largely explains why spending remains strong while consumer confidence is so weak.” According to Knightley, this situation is also evident at the enterprise level because capital spending outside of the technology industry has been shrinking for four consecutive quarters, which is a sign of decline. However, he said that since the government and businesses are working hard to win the US battle for AI dominance, spending on high-income households and technology capital spending will still drive growth in 2026.