When Hilton Worldwide CEO Christopher Nassetta introduced the term “C-shaped economy” during the company’s latest earnings call, he added a new phrase to Wall Street’s growing list of alphabet-themed economic narratives.
The term appears to describe a potential shift away from the “K-shaped economy” that dominated much of the post-pandemic recovery, where wealthier consumers continued spending while lower- and middle-income households faced pressure from inflation, higher interest rates and rising debt burdens.
Nassetta said easing inflation, expectations for lower interest rates and investment linked to artificial intelligence are beginning to support broader consumer demand, particularly among middle-income households.
How ‘C-Shaped’ Economy Differs From ‘K-Shaped’ Recovery
Economists say the concept reflects the idea that consumer spending is becoming less polarized.
“A C-shaped economy is essentially a rebuttal to the K-shaped economy narrative,” It’s A Working Title’s Chief Economist, Bryce Quillin, told Benzinga.
“In practical terms, luxury demand remains healthy, but growth broadens downward into mid-market and value categories.”
Quillin said that would mean middle-income consumers are gradually regaining …
This post was originally published here
