Goldman Sachs Links Low Consumer Confidence to Decline in American Happiness

Consumer confidence hit its second-lowest level on record in September, and Goldman Sachs points to 'lower happiness' as a key factor. In a note to clients, economist Joseph Briggs attributed the decline to a growing dissatisfaction with the state of the world.

The University of Michigan's Consumer Sentiment Index fell 7.5% from August and 13.2% from last year, its lowest point since May, when it reached 44.8.

Despite the Fed raising interest rates to combat inflation, Briggs warned that consumer confidence may not rebound even if the economy stays on track. He cited data from the University of Chicago's General Social Survey, which showed a decline in happiness among Americans, particularly since the pandemic.