 "US consumer confidence lowest since 2014, anxiety over prices and jobs dents American sentiment")
US consumer confidence slid sharply in January to its lowest level in more than a decade, as households grew increasingly anxious about high prices, weakening job prospects and the broader economic outlook.
The Conference Board’s Consumer Confidence Index fell to 84.5 in January, down from an upwardly revised 94.2 in December, data released on Tuesday showed. The reading marked the lowest level since May 2014 and came in well below economists’ expectations.
The sharp decline reversed December’s modest improvement and underscored renewed pessimism among consumers about both current economic conditions and the outlook for the months ahead.
Labour market outlook weakens
A measure tracking expectations for the next six months dropped to its lowest level since April, while the index assessing present conditions slid to the weakest reading in nearly five years.
Views on the labour market deteriorated notably. The share of consumers who said jobs were “hard to get” rose to the highest level since February 2021, while those reporting jobs as “plentiful” declined. The gap between the two, closely watched by economists as an indicator of labour market health, narrowed to one of the weakest levels in years.
Economists expect job growth to remain largely stagnant in 2026, even though they do not foresee widespread layoffs.
High prices, income concerns dominate survey responses
Concerns over elevated prices, particularly for fuel, oil and groceries, featured prominently in survey responses, according to Dana Peterson, chief economist at The Conference Board. Mentions of healthcare costs, politics and the labour market also increased.
“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” he said. “All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths.”
Geopolitical tensions added to consumer unease. Respondents cited concerns about conflicts and global instability, including tensions involving Venezuela and Iran.
Fewer Americans now expect their incomes to rise in the coming months, prompting households to curb discretionary spending, scale back vacation plans and approach major purchases such as cars and appliances with greater caution.
Quick Reads
View All“While the expectations index has overstated weakness in spending in recent quarters, its recent deterioration is unlikely to be an entirely false signal,” Oliver Allen, senior US economist at Pantheon Macroeconomics, said in a note.
The decline in sentiment was broad-based across age and income groups. Confidence among consumers aged 35 to 54, as well as those earning more than $50,000 a year, plunged to some of the lowest levels seen since 2013.
 "Why Ajit Pawar was fondly called the ‘dada of Maharashtra politics’")
 "Starmer heads to China, doesn't want UK to 'blow hot and cold' but…")
 "The Learjet 45, the plane that crashed with Ajit Pawar on board in Baramati")
 "India–EU FTA's biggest dividend is not trade; it's co-creation: Febi secretary general | Exclusive")
 "Why Ajit Pawar was fondly called the ‘dada of Maharashtra politics’")
 "Starmer heads to China, doesn't want UK to 'blow hot and cold' but…")
 "The Learjet 45, the plane that crashed with Ajit Pawar on board in Baramati")
 "India–EU FTA's biggest dividend is not trade; it's co-creation: Febi secretary general | Exclusive")
