TROY, Mich.—The share of U.S. consumers considered financially healthy held at 34% in July for the second consecutive month, the highest level since November 2025, but two-thirds of consumers remain financially unhealthy, according to new data from JD Power.
JD Power said 66% of consumers were classified as financially vulnerable, overextended or stressed, unchanged from June. The findings illustrate what the firm described as a K-shaped economy in which improving consumer confidence is being accompanied by significant financial distress among other segments of the population.
Affordability pressures eased somewhat, with 43% of consumers saying their monthly expenses feel less affordable than six months earlier, down from 45% in June. Financially stressed consumers were most likely to report worsening affordability, at 56%, followed by financially vulnerable consumers at 53%.
Despite that improvement, 77% of consumers said they changed their day-to-day spending in response to rising costs. The most common moves included cutting back on dining and entertainment, cited by 41%; switching to less expensive brands or stores, 32%; and delaying discretionary purchases, 28%. More significantly, 27% said they have cut grocery spending or skipped meals, while 18% have borrowed money from family or friends to cover expenses.
Other indicators point to deeper financial problems for some households. JD Power found 14% of consumers have sold personal belongings to cover expenses, while 9% have missed a rent, mortgage or utility payment and 9% have skipped a prescription or rationed medication because of cost.
Groceries remain consumers' biggest source of financial stress, cited by 43%, unchanged from June. But housing costs are becoming a greater concern, with 24% identifying housing as a major source of stress. Gas-related financial stress, meanwhile, fell five percentage points to 26%, leaving housing close to becoming consumers' second-largest source of financial pressure.