Consumer sentiment is in the dumps despite a solid economy. Goldman Sachs blames 'lower happiness'
American consumer sentiment in September 2026 fell below levels recorded in June 2022, when inflation reached 9.1%. This decline persists despite lower current inflation and strong standard economic measures. Economic pessimism is deepening across both major political parties following the November 3 midterm elections. High earners continue to report financial strain, and a vast majority of registered voters identified the economy as a critical factor in their voting decisions.
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- ✓ US consumer sentiment in September 2026 was lower than it was in June 2022.
- ✓ Economic pessimism is deepening among members of both major political parties.
What changed
September 2026 sentiment data confirms a drop below the June 2022 inflation peak levels.
Live updates
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US Consumer Sentiment Drops Below June 2022 Levels
American consumer sentiment in September 2026 fell below levels recorded in June 2022, when inflation reached 9.1%. This decline persists despite lower current inflation and strong standard economic measures. Economic pessimism is deepening across both major political parties following the November 3 midterm elections. High earners continue to report financial strain, and a vast majority of registered voters identified the economy as a critical factor in their voting decisions.
Why it matters
The disconnect between positive macroeconomic data and negative public perception suggests a gap in how citizens experience the economy. This sentiment influenced the 2026 midterm elections. Analysts are investigating why happiness remains low while inflation has decreased.
What is confirmed
- US consumer sentiment in September 2026 was lower than it was in June 2022.
- Economic pessimism is deepening among members of both major political parties.
Still unconfirmed
- Goldman Sachs attributes the sentiment drop to lower happiness.
- 84% of registered voters consider the economy a very important factor for their vote.
What to watch next
- Official post-election economic data reports
- New consumer sentiment indices for October 2026
confidence 90%Sources used for this update (2)
- www.upi.com — Are American voters actually gloomy about the economy?
- ua.news — US consumer sentiment lower than at 9.1% inflation — Fortune
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Voter Pessimism Deepens as U.S. Midterms Approach
American consumer sentiment has dropped below levels recorded during the 9.1% inflation peak, despite standard economic measures remaining strong. Voters across both major political parties express mounting pessimism about personal finances and the broader economy, with six-figure earners also feeling the financial pinch. A Pew survey conducted in early October reveals that 84% of registered voters consider the economy a very important factor for their upcoming vote, making it the least polarizing issue polled. This widespread gloom threatens to impact political outcomes as the United States midterm elections arrive on November 3, 2026.
Why it matters
The persistence of low consumer sentiment despite solid macroeconomic indicators creates a disconnect for analysts tracking voter behavior. High gas prices and stubborn inflation continue to fuel frustration across party lines, drawing attention from major financial institutions like Goldman Sachs. With the richest 10 percent of Americans accounting for half of all consumer spending, broader economic anxiety among various income brackets carries significant political and market consequences.
What is confirmed
- Consumer sentiment is lower now than it was when inflation peaked at 9.1%.
- Voters in both major political parties are increasingly pessimistic about the economy.
- An early October Pew survey found that 84% of registered voters considered the economy very important to their vote.
Still unconfirmed
- Polling is looking grim for Republicans ahead of the U.S. midterm elections on Nov. 3, 2026, due in large part to economic concerns.
What to watch next
- U.S. midterm election results on November 3, 2026
- Further updates on spending habits among six-figure earners
confidence 90%Sources used for this update (4)
- fortune.com — Consumer sentiment is lower than at the 9.1% inflation peak ...
- theconversation.com — Are American voters actually gloomy about the economy, or is ...
- dnyuz.com — Consumer sentiment is lower now than when inflation ... - DNyuz
- www.businessinsider.com — Economic Concerns Rise As Six-Figure Earners Feel the Pinch ...
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Consumer sentiment hits 15-year low amid high prices and economic resilience
US consumer sentiment has reached a 15-year low, despite a solid economy with low unemployment and growing GDP. The decline in sentiment is attributed to high gas prices and persistent inflation, with consumers across party lines expressing frustration. The Goldman Sachs U.S. Equity Sentiment Indicator currently sits at -1.3, historically preceding a 2.0% gain for the S&P 500 over the next month.
Why it matters
The disconnect between consumer sentiment and economic performance persists, with American consumer spending continuing to increase even as confidence declines. This trend has significant implications for the holiday season and midterm elections. The economic resilience, including a 13% rise in the stock market this year, contrasts with consumer pessimism.
What is confirmed
- Consumer sentiment has reached a 15-year low
- High gas prices and persistent inflation continue to drag down US consumer sentiment
- The Goldman Sachs U.S. Equity Sentiment Indicator currently sits at -1.3
- Consumers remain frustrated with high prices eroding their living standards
Still unconfirmed
- Goldman Sachs blames lower happiness for the decline in consumer sentiment
What to watch next
- Q3 print from retail and restaurant investors
- midterm elections
- University of Michigan Surveys of Consumers updates
confidence 85%Sources used for this update (6)
- finance.yahoo.com — Consumer sentiment hits 15-year low ahead of holiday season
- www.cnn.com — Consumers across party lines are fed up with high gas prices
- finvaulta.com — US Consumer Dashboard: Resilience | Goldman Sachs | Finvaulta
- finance.yahoo.com — Consumer Sentiment Reaches 5-Month Low as Inflation Outlook ...
- www.aljazeera.com — US consumer sentiment hits a near-record low before midterm ...
- spectrumlocalnews.com — Consumer sentiment lingers near record low in October
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US spending rises as consumer confidence falls
American consumer spending continues to increase despite a decline in consumer confidence. This disconnect persists while the broader economy shows low unemployment, growing GDP, and a 13% rise in the stock market this year. While some analysts attribute the pessimism to the cost of living, Goldman Sachs points to lower happiness. The Goldman Sachs U.S. Equity Sentiment Indicator currently sits at -1.3, a level that has historically preceded an average 2.0% gain for the S&P 500 over the next month.
Why it matters
The gap between sentiment and spending suggests that psychological gloom is not stopping retail activity. Factors such as retail therapy, social media influence, and buy now pay later options may be driving this trend.
What is confirmed
- The stock market has increased by 13% this year.
- The Goldman Sachs U.S. Equity Sentiment Indicator has dropped to -1.3.
Still unconfirmed
- Rising cost of living is driving the decline in sentiment.
What to watch next
- S&P 500 performance over the next 30 days
- Updated consumer confidence index readings
- New data on buy now pay later debt levels
confidence 80%Sources used for this update (2)
- www.foxnews.com — Consumer confidence drops but consumer spending keeps on ...
- www.cbsnews.com — In Michigan, consumer sentiment is pessimistic before midterms
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Wall Street grows cautious as consumer sentiment slides
U.S. consumer sentiment continues to decline despite an economy marked by low unemployment, growing GDP, and a 13% increase in the stock market this year. While Goldman Sachs links the gloom to lower happiness, other analysts point to the rising cost of living. The Goldman Sachs U.S. Equity Sentiment Indicator has dropped to -1.3, a reading that has historically preceded an average 2.0% gain for the S&P 500 over the following month. Consumers are responding by prioritizing value and utility in their spending.
Why it matters
The disconnect between strong macroeconomic indicators and poor public mood creates uncertainty for investors. This gap suggests that traditional growth metrics may not reflect the actual financial pressure on households.
What is confirmed
- The stock market has risen 13% this year.
- U.S. GDP is growing and unemployment remains low.
Still unconfirmed
- The Goldman Sachs U.S. Equity Sentiment Indicator has slipped to -1.3.
- The University of Michigan index dropped to 46.3 this month from 48.1 in September.
What to watch next
- Future readings of the University of Michigan consumer sentiment index
- S&P 500 performance over the next 30 days
confidence 80%Sources used for this update (3)
- fortune.com — Suddenly, Wall Street is worried that the U.S. economy is ...
- www.fool.com — Consumer Sentiment is Falling - The Motley Fool
- www.isabelnet.com — Sentiment Indicator and Stock Positioning – ISABELNET
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US Consumer Sentiment Drops Further As Cost Worries Mount
United States consumer sentiment continues to fall, approaching record lows as cost worries mount and shoppers anticipate stubborn inflation. The University of Michigan index dropped to 46.3 this month, sliding from 48.1 in September. Goldman Sachs attributes the persistent gloom to lower happiness. Meanwhile, consumers maintain festive spending habits by shifting toward value and utility, boosting online sales in smaller cities while remaining cautious on high-priced items like jewelry and gold.
Why it matters
The University of Michigan consumer sentiment index fell 13% year over year in September, which included a drop of almost 8% from August. This decline occurs despite a solid economy with healthy household balance sheets. Observers continue tracking how public mood diverges from broader economic indicators.
What is confirmed
- The University of Michigan consumer sentiment index fell to 46.3 this month from 48.1 in September.
- Goldman Sachs attributes tumbling consumer sentiment to lower happiness.
Still unconfirmed
- Organised retailers could benefit from market share gains as consumers focus on value and utility during the festive season.
What to watch next
- Future updates to the University of Michigan consumer sentiment index
- Shifts in consumer spending on high-priced items like jewelry and gold during the festive season
confidence 90%Sources used for this update (5)
- congress.net — Goldman Sachs Says 'Lower Happiness' Is Driving Consumer ...
- www.cfobrew.com — Consumer sentiment drops in October, approaches record low
- tradingeconomics.com — United States Consumer Confidence News 504216et
- www.thedailystar.net — US consumer sentiment dips as cost worries mount: survey
- economictimes.indiatimes.com — consumer sentiment: Latest News & Videos, Photos about ...
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Consumer sentiment plummets to 12-year low
US consumer sentiment has hit a 12-year low, despite a strong economy with healthy household balance sheets and consumers driving 68% of economic activity. The Conference Board's Consumer Confidence Index fell 6.7 points to 81.9 in September, missing forecasts of 89. High prices for goods and fuel, stagnating wages, and the ongoing Iran war are cited as primary drivers of the decline.
Why it matters
The decline in consumer sentiment is significant as it may impact consumer spending, which accounts for a substantial portion of economic activity. A weak consumer sentiment reading could have implications for the overall economic growth. The midterm elections are approaching, and the current economic sentiment may influence voters' decisions. The Federal Reserve's decision on interest rates will also be crucial in determining the future trajectory of the economy.
What is confirmed
- The Conference Board's Consumer Confidence Index fell 6.7 points to 81.9 in September.
- US consumer sentiment has hit a 12-year low.
- Consumers drive 68% of economic activity.
Still unconfirmed
- Higher rates will weigh on stock returns, reining in consumer spending that's been boosted by the wealth effect recently.
What to watch next
- The Federal Reserve's decision on interest rates
- The impact of high prices on consumer spending
- The midterm elections and their effect on economic policy
confidence 80%Sources used for this update (3)
- www.visionmonday.com — VM - INSIGHTS - Vision Monday
- www.cnn.com — With midterms approaching, Americans’ confidence in the economy is in a tailspin
- www.businessinsider.com — Higher Rates to Pressure Stocks, Hit Consumer Spending ...
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Consumer sentiment plummets despite solid economy
US consumer sentiment has hit a 12-year low, despite a strong economy with household balance sheets remaining healthy and consumers driving 68% of economic activity. The Conference Board's Consumer Confidence Index fell 6.7 points to 81.9 in September, missing forecasts of 89. High prices for goods and fuel, stagnating wages, and the ongoing Iran war are cited as primary drivers of the decline.
Why it matters
The decline in consumer sentiment is significant as it contrasts with positive economic indicators such as all-time high stock market, 4% unemployment rate, and record household net worth. This disparity suggests that factors beyond economic fundamentals are influencing consumer attitudes.
What is confirmed
- Consumer prices are up 30% since the start of 2020
- The trailing 12-month inflation rate was 3.4%
- Household net worth is higher than it's ever been
- The unemployment rate is at 4%
- US consumer confidence fell 6.7 points to 81.9 in September
Still unconfirmed
- Goldman Sachs blames 'lower happiness' for low consumer sentiment
What to watch next
- Upcoming jobs report
- Future inflation rate announcements
- Consumer sentiment surveys for October
confidence 85%Sources used for this update (3)
- awealthofcommonsense.com — Why is Consumer Sentiment so Low? - A Wealth of Common Sense
- finance.yahoo.com — Confidence about the economy is in short supply despite a ...
- www.winnipegfreepress.com — Confidence about the economy is in short supply despite a ...
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US Consumer Confidence Drops to Lowest Level Since 2014
US consumer confidence plummeted in September 2026, with the Conference Board's Consumer Confidence Index falling 6.7 points to 81.9. This figure missed the forecast of 89. While consumers continue to drive 68% of the economy and household balance sheets remain strong, optimism has hit a 12-year low. High prices for goods and fuel, stagnating wages, and the ongoing Iran war are primary drivers of the decline. Despite this gloom, Goldman Sachs reports that consumer health in the US has not deteriorated like it has in other developed markets.
Why it matters
The disconnect between strong economic indicators and poor sentiment suggests a gap between official data and lived experience. This trend is complicated by geopolitical instability and persistent inflation. The timing precedes upcoming midterm elections.
What is confirmed
- The Conference Board's Consumer Confidence Index fell to 81.9, a 6.7 point decrease.
- US consumer confidence reached its lowest level since 2014 in September 2026.
- Rising costs for fuel and goods contributed to the drop in consumer confidence.
Still unconfirmed
- Stagnating wages and the Iran war are causing confidence to sink.
- Consumers drive 68% of the economy.
- Consumer health deteriorated across most developed markets except the US.
What to watch next
- Upcoming midterm election results
- New reports on real income growth
- Changes in energy and fuel pricing
confidence 90%Sources used for this update (7)
- www.cnbc.com — Economic News
- www.cnbc.com — Consumer optimism slides to lowest since 2014 as fears ... - CNBC
- www.latimes.com — Americans’ confidence in the economy hits its lowest level ...
- www.investmentwatchblog.com — Consumers feel terrible. They still drive 68% of the economy ...
- finance.yahoo.com — U.S. consumer confidence hits 12-year low in September 2026
- www.aljazeera.com — US consumer confidence hits its lowest level since 2014 ahead ...
- finvaulta.com — G10 Consumer Dashboard: Improvement in the US, Slowdown ...
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US Consumer Sentiment Hits Record Lows Despite Strong Economic Indicators
US consumer sentiment has reached record lows even as the economy remains solid, characterized by steady jobs and rising stocks. Goldman Sachs attributes this disconnect to "lower happiness." This gloom extends beyond financial metrics, with Pluang linking the decline to a loss of trust in institutions. While numerical data suggests economic health, Americans report feeling significant stress, indicating that the perceived reality of the economy differs from official statistics.
Why it matters
This gap between macroeconomic data and public mood suggests that traditional economic indicators no longer accurately predict consumer behavior. It highlights a psychological shift where happiness and institutional trust influence sentiment more than employment or stock market gains.
What is confirmed
- Consumer sentiment has reached record lows despite a solid economy.
- The US economy shows strength through steady jobs and rising stocks.
Still unconfirmed
- Consumer gloom is no longer solely about the economy.
What to watch next
- New data on institutional trust levels
- Updated consumer sentiment indices
- Goldman Sachs reports on happiness metrics
confidence 80%Sources used for this update (5)
- CNBC — Consumer sentiment is in the dumps despite a solid economy. Goldman Sachs blames 'lower happiness'
- FlowingData — When the economy seems good in numbers but feels bad in reality
- Yahoo Finance — Stocks Rise as Jobs Remain Steady, Yet Americans Feel the Stress
- The Dark Side Of The Boom — Consumer Gloom Is No Longer Just About the Economy
- Pluang — US consumer sentiment hits record lows, linked to declining happiness and trust in institutions
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