Like just about everything else about this economy, consumer sentiment is looking K-shaped. 

Preliminary data from the University of Michigan’s survey shows consumer sentiment fell to its lowest point in more than three years this month, dragged down by sharp drops in how people view their current personal finances and short-term business conditions. 

That was pretty much true no matter the respondent’s age, income, or political affiliation, unless the respondent was among the top one-third of stock owners. Their sentiment improved — and by significantly more than the amount everyone else’s declined.

It makes sense that people with more wealth would feel better about the economy. 

But according to Joanne Hsu, director of the University of Michigan’s Surveys of Consumers, after President Donald Trump announced tariffs in early April, wealthy consumers weren’t feeling great either. And sentiment actually converged.

“Since then, the folks who are higher wealth they are no longer quite so worried about the worst case scenario that consumers were broadly expecting back in April and May,” Hsu said. “And they've been really supported by these strong … stock market performances.”

On the other hand, she said, people with fewer stocks? “Their sentiment is continuing to deteriorate.”

So, yeah, K-shaped once again.

Hsu said these more pessimistic consumers are feeling squeezed. 

“They're much more concerned about day to day pocketbook issues like high prices and weakening incomes,” she said.

This survey took place during the government shutdown, and that could also be having a big impact on how consumers feel, said John Leer, chief economist of Morning Consult, which also tracks sentiment.

“So it's not surprising to me that consumers are souring on the economy… what we know very clearly is that consumers do not like policy uncertainty,” he said.

Leer said he thinks that if the shutdown were to end, sentiment could rebound.

“I'm fairly optimistic … that the underlying health of the consumer is not deteriorating quite as rapidly as the consumer sentiment data suggests it might be,” he said.

Consumer sentiment is important because how consumers feel can affect how households spend. And that can affect businesses and whether they cut back on hiring, said Sasha Indarte at The University of Pennsylvania’s Wharton School.

“That decline in income means more cutbacks in spending. People get more pessimistic, and you can get this vicious cycle emerging,” she said.

Though, sour sentiments don’t necessarily mean a recession is inevitable. Indarte said sentiment is like a temperature check of the economy: It doesn’t predict what will definitely happen, but does point to some risk.