Consumer Expectations for Economy Jump 4.1 Points as Personal Finance Optimism Lags

The economy is beginning to inspire confidence again, but Americans are not convinced that confidence will arrive in their own wallets anytime soon.

That disconnect sits at the center of a PYMNTS Intelligence report, “The Confidence Divide: Why Americans Trust the Economy More Than Their Paychecks.” Consumer sentiment improved in July as Americans grew more optimistic about the economy. At the same time, however, confidence in personal finances rose much more slowly, revealing a widening gap between how people view the economy and how they see their own financial prospects. In other words, while consumers believe the country is moving in the right direction, many still expect household budgets to recover on a different timetable. For banks, payment providers and fintechs, that distinction offers a clearer picture of how consumers may approach spending, borrowing and saving during the next phase of the economic recovery.

Key Findings

Consumers’ three-year outlook for the national economy increased by 4.1 points in July 2026.

Consumers’ outlook for their household finances over the next three years rose by just 0.8 points.

The gap between consumers’ three-year outlook for their personal finances and the national economy narrowed to 8.4 points from 11.7 points in June, the smallest difference the index has recorded.

This disconnect can be explained by the different metrics that measure macroeconomic trends and household spending. National economic indicators like the stock market, employment index and GDP describe broad trends, but consumers judge their own finances through monthly paychecks, grocery bills, rent payments and savings balances. Those measures tend to change gradually. A family can believe inflation is easing or that the economy is strengthening while still feeling that their own budget leaves little room for error.

Part of that caution reflects experience. Over the past several years, households have weathered persistent inflation, higher borrowing costs and periods of uncertainty that forced many to rethink spending habits. Even as economic conditions improve, consumers often wait for tangible signs such as stronger purchasing power, rising savings or greater financial flexibility before declaring that their own situation has improved.

That measured outlook does not necessarily signal pessimism, but instead consumers becoming more selective about the evidence they rely on. Rather than reacting immediately to encouraging economic headlines, many are looking for improvements they can see in their own checking accounts. For financial institutions, that creates an opportunity to help close the gap through products that improve cash flow, increase financial visibility and give consumers greater control over day-to-day money management.

The report ultimately points to an encouraging trajectory. Americans increasingly believe the economy is headed in the right direction. As that optimism gradually filters through to wages, employment and household finances, the confidence divide identified today could transform into a bridge connecting stronger economic performance with stronger consumer financial health.