The University of Michigan consumer sentiment index hit record lows this year, falling 13% year over year in September. Goldman Sachs economist Joseph Briggs attributes this gloom not to the economic situation itself, but to broader pessimism and a decline in happiness across American society. According to the University of Chicago’s General Social Survey, the share of respondents feeling « very happy » dropped from 31% in 2016 to 23% in 2024, while those reporting « not too happy » rose from 13% to 20%. Briggs also highlights a link between declining happiness and decreasing trust in public institutions, which could make consumer sentiment a less useful predictor of future economic activity.
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