The American Customer Satisfaction Index declined sharply in the second quarter of 2026, posting a drop surpassed only once in the past century as customer complaints reached record levels. ACSI warned that continued dissatisfaction could prompt more consumers to switch companies, potentially benefiting businesses with both high customer satisfaction and retention.
The ACSI fell to 76.1, continuing a decline from 78 in 2024. Despite the recent slide, customer satisfaction remains relatively strong compared with much of the past 25 years. The downturn follows two years of sharp gains that began in mid-2022 and continued through early 2024.
Among retailers, general merchandisers gained one point in the 2026 ACSI ratings to 79, while specialty retailers, including hobby and home, hardware and home improvement, personal care and technology and office retailers, increased one point to 80. Online retailers were unchanged at 79, while supermarkets slipped one point to 78.
U.S. gross domestic product is growing at an annual rate of 1.5%, which ACSI characterized as relatively weak. Because consumer spending represents the largest component of GDP, the organization maintained that greater consumer dissatisfaction could further pressure purchasing activity, especially if higher-income consumers pull back because of macroeconomic concerns. Consumer spending has increased recently, ACSI noted, but has been driven by a relatively small proportion of affluent households. Without their spending, GDP growth would have been negative, the organization indicated.
At the same time, ACSI pointed out, citing U.S. Bureau of Economic Analysis data, that pretax corporate profits are at record levels, while ACSI data shows customer complaints are setting records as well. The organization warned that the combination could increase the risk of customer defection. If shoppers retreat from retailers they don’t believe are serving their interests, companies with weak customer satisfaction could face significant consequences, particularly those that have relied on pricing power and high switching costs to retain customers.
ACSI maintained that companies can mitigate the risk by using analytics to improve consumer buying and consumption experiences. At the macroeconomic level, ACSI asserted that the widening gap between buyer utility, or satisfaction and seller profits indicates that companies are charging more while providing less, creating what the organization characterized as an economic welfare loss.
ACSI pointed to several warning signs, including declining customer satisfaction, record customer complaints, increased market concentration, weak economic growth and persistent inflation. As additional evidence, the organization noted that, year to date, the ACSI ETF, which holds about 30 to 35 companies that rank highly for customer satisfaction in their respective markets, has outperformed the S&P 500.
“If the pent-up customer defection materializes, companies with both high customer satisfaction and high customer retention will benefit not only from downside protection, but also from strong stock returns,” said Claes Fornell, ACSI founder. “It is customer retention, particularly at high levels, that causes exponential profit growth. Long-term, it is better that such growth comes from satisfied rather than captive customers.”
