Goldman Says 13% Sentiment Drop Reflects Lower Happiness as Economy Stays Strong
Updated
Updated · CNBC · Sep 19
Goldman Says 13% Sentiment Drop Reflects Lower Happiness as Economy Stays Strong
1 articles · Updated · CNBC · Sep 19
Summary
Goldman Sachs said September’s University of Michigan consumer sentiment index was down 13% from a year earlier, arguing the weakness reflects falling happiness more than deteriorating economic fundamentals.
Joseph Briggs told clients broader pessimism, weaker trust in institutions and lingering inflation pressures help explain why sentiment has stayed depressed even as GDP growth and stock performance look comparatively solid.
University of Chicago survey data cited by Goldman showed the share of Americans who were “very happy” fell to 23% in 2024 from 31% in 2016, while “not too happy” rose to 20% from 13%.
That link to non-economic factors means sentiment may not rebound even if the economy keeps expanding, potentially making the indicator less useful as a guide to future economic activity.