Early Warning Indicator Signals Sharp Sentiment Deterioration Among Low-Income Consumers, Gen Z

Building on our previous reports, "Goldman Goes DEFCON 1 on Imploding U.S. Consumer" and "Abrupt Sentiment Shift Rocks Gen Z: Restaurants Warn of Spending Drop as Student Loan' Default Cliff' Arrives," Goldman Sachs analysts led by Managing Director Kate McShane provided clients on Monday morning with the latest snapshot of low-income consumers, showing continued deterioration.

McShane used HundredX data to gauge real-time consumer sentiment and purchase intent. The data, drawn from tens of thousands of weekly consumer feedback responses, measures how likely people are to spend across key categories - restaurants, apparel, beauty, home improvement, electronics, travel, etc. - shows a sharp drop in discretionary spending intent among lower-income and younger consumers (Gen Z, millennials).