Goldman Sachs suggests that a broad decline in American happiness and trust in institutions is distorting consumer confidence metrics, decoupling them from actual economic performance.
Goldman Sachs published a note attributing low consumer confidence to lower happiness rather than the economy, but this does not directly affect Goldman's own valuation.
Goldman Sachs economist Joseph Briggs argues that record-low consumer confidence reflects a fundamental decline in national happiness rather than purely economic distress. While the University of Michigan index hit its second-lowest level on record, Briggs notes that shrinking trust in public institutions and broader societal dissatisfaction are driving the gap between grim sentiment and resilient GDP growth.
Goldman Sachs attributes the low sentiment to a fundamental, downbeat assessment of the state of the world and a general decline in happiness, rather than purely economic factors like GDP growth.