Here's why everyone's talking about a 'K-shaped' economy

WASHINGTON (AP) — References to the “K-shaped economy” are rapidly proliferating. So what does the phrase mean? Simply put, the upper part of the K refers to higher-income Americans seeing their incomes and wealth rise while the bottom part points to lower-income households struggling with weaker income gains and steep prices. A big reason the term is popping up so often is that it helps explain an unusually muddy and convoluted period for the U.S. economy. Growth appears solid, yet hiring is sluggish and the unemployment rate has ticked up. Overall consumer spending is still rising, but Americans are less confident. And the stock market still hovers near record highs even as wage growth is slowing.

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