# Why Americans feel miserable despite a strong economy

> Goldman Sachs says happiness, not jobs or GDP, explains why consumer sentiment keeps hitting record lows.
- Title: Why Americans feel miserable despite a strong economy · CNBC
- Summary: Goldman Sachs says happiness, not jobs or GDP, explains why consumer sentiment keeps hitting record lows. Consumer sentiment may no longer track economic…
- Keywords: consumer sentiment, goldman sachs, happiness, economy, university of michigan, joseph briggs, general social survey, trust in institutions, economic disconnect, consumer confidence, business, finance
- Source: CNBC — https://cnbc.com/2026/09/19/goldman-sachs-happiness-struggling-consumer-sentiment.html
- Author: Alex Harring
- Published: 2026-09-19T12:50:49+00:00
- Read time: 1 min
- Topics: consumer sentiment, goldman sachs, happiness, economy, university of michigan, joseph briggs, general social survey, trust in institutions, economic disconnect, consumer confidence, business, finance
## Sentiment hits record lows despite strong economy
The University of Michigan's consumer sentiment index fell 13 percent year over year in September, dropping nearly 8 percent in August alone. Economists are puzzled why sentiment remains depressed when jobs and GDP growth look solid.
## Goldman Sachs blames broader unhappiness
Goldman economist Joseph Briggs told clients that weak sentiment reflects pessimism about the world, not just the economy. While inflation hurts confidence, lower happiness across society better explains why sentiment stays depressed despite economic strength.

> Low reported economic sentiment likely reflects a more fundamental, downbeat assessment of the state of the world rather than the economy.
## Happiness never recovered from pandemic drop
Data from the University of Chicago's General Social Survey shows the share of Americans feeling very happy fell to 23 percent in 2024 from 31 percent in 2016. Those reporting feeling not too happy rose from 13 percent to 20 percent over the same period.
## Trust in institutions is also collapsing
Briggs found that declining trust in public institutions accounts for a disproportionate share of happiness losses in recent years. Michigan survey director Joanne Hsu confirmed the downtrend in sentiment mirrors both lower happiness and eroding institutional trust.
## Sentiment may stop predicting the economy
Because consumer sentiment now reflects non-economic factors like happiness and institutional trust, it may no longer improve even if the economy stays strong. This could make sentiment readings less useful for forecasting economic dynamics.
## Key takeaway

Consumer sentiment may no longer track economic health because Americans' unhappiness stems from broader social pessimism and eroding trust in institutions, not just financial stress.