Happiness Index Plummets as Consumer Sentiment Hits Record Lows

Goldman Sachs has identified a surprising factor behind persistently poor consumer sentiment readings in the United States: a broad societal decline in happiness.

The University of Michigan's consumer sentiment index hit record lows this year, falling 13% year over year in September alone.

Economist Joseph Briggs noted that low reported economic sentiment likely reflects a more fundamental, downbeat assessment of the state of the world rather than just the economy.

The University of Chicago's General Social Survey shows that happiness never fully recovered from the pandemic, with only 23% of respondents feeling 'very happy' in 2024 compared to 31% in 2016.