Consumer sentiment is in the dumps despite a solid economy. Goldman Sachs blames 'lower happiness'
Goldman economist Joseph Briggs said broader pessimism in society may be contributing to struggling consumer sentiment even as the economy chugs along.
TL;DR
- Consumer sentiment has reached record lows, despite a seemingly strong economy.
- Goldman Sachs economist Joseph Briggs hypothesizes that declining societal happiness is a major contributor to depressed consumer sentiment.
- Data shows a decrease in 'very happy' respondents and an increase in 'not too happy' respondents between 2016 and 2024.
- Lower trust in public institutions is linked to a disproportionate amount of the decline in net happiness.
- Consumer sentiment may not improve even if the economy continues to perform well, potentially making it a less reliable economic indicator.