Consumer Sentiment Fell to Record Lows in 2026

A record 95 percent of Americans report an affordability crisis as consumer sentiment and happiness levels decline.

Updated on Sept. 19, 2026 in Spending

Bold flat-color editorial illustration of a single metal tin, symbolizing the economic pressure and affordability crisis facing American households. — The University of Michigan consumer sentiment index fell 13 percent in September 2026, as 95 percent of Americans reported facing an affordability crisis. AI Illustration. Upload story photo >

Live Poll

Do you feel your personal sense of happiness accurately reflects the state of the national economy?

The University of Michigan consumer sentiment index dropped 13 percent year over year in September 2026, reaching record lows. This decline coincides with 95 percent of Americans reporting an ongoing affordability crisis.

Why it matters

Rising inflationary pressures and a decline in public trust are contributing to a disconnect between economic growth and individual well-being. This shift suggests that traditional economic markers may provide less insight into how households feel about their financial futures.

The consumer sentiment index fell 13 percent year over year as of September 2026, while 95 percent of Americans cited an affordability crisis. Data from the General Social Survey shows that those feeling very happy dropped to 23 percent in 2024, down from 31 percent in 2016.

The players

University of Michigan

An academic institution that conducts the widely cited monthly consumer sentiment index.

Goldman Sachs

A financial services firm that tracks economic indicators and institutional research.

General Social Survey

A long-running sociological project that tracks American happiness and social trends.

The details

Goldman Sachs analysts identified a link between lower societal happiness and depressed consumer confidence, citing decreased trust in public institutions as a primary driver. As the percentage of Americans identifying as not too happy rose to 20 percent in 2024, the relationship between general mood and economic outlook has shifted. This suggests that households may remain pessimistic about personal finances regardless of broader macroeconomic growth trends.

2016: 31 percent of survey respondents reported feeling very happy.
2024: The share of very happy respondents declined to 23 percent.
August 2026: The consumer sentiment index served as the monthly baseline.
September 2026: The index saw a 13 percent year over year decline.

Money Landscape

The current drop in the University of Michigan consumer sentiment index marks a departure from historical trends where economic growth typically bolstered public mood. Sentiment now appears less tied to standard performance indicators as trust in public institutions wanes.

When consumer sentiment is low, households often tighten budgets and prioritize essential spending over discretionary purchases. If you are concerned about how these trends affect your personal budget, speak with a qualified financial professional to review your long-term goals.

The takeaway

The decline in sentiment suggests that traditional economic indicators may not capture the full picture of household financial stress. Readers should prioritize reviewing their own budget categories against the backdrop of broader affordability trends.