U.S. Consumer Confidence Falls in January to Lowest Level Since 2014/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Americans’ confidence in the economy plummeted in January, reaching its lowest level in more than a decade, according to new data from the Conference Board. Concerns over inflation, job security, and ongoing tariff uncertainty are fueling recession fears. Despite continued economic growth, public sentiment is rapidly deteriorating.
Economic Confidence Quick Looks
- Consumer Confidence Index dropped 9.7 points to 84.5, lowest since May 2014
- Expectations Index fell to 65.1, remaining below the recession warning threshold of 80 for the 12th month
- Current Conditions Index declined by 9.9 points to 113.7
- Job outlook weakened:
- 23.9% say jobs are plentiful (down from 27.5%)
- 20.8% say jobs are hard to get (up from 19.1%)
- Key concerns among consumers:
- Persistent inflation, including rising gas and grocery prices
- Trump administration’s new tariffs and trade uncertainty
- Political instability
- Healthcare and insurance costs
- Ongoing global conflicts
Deep Look: U.S. Consumer Confidence Falls in January to Lowest Level Since 2014
WASHINGTON — Jan. 27, 2026 | Confidence in the U.S. economy has sharply declined, with the Conference Board reporting its Consumer Confidence Index fell to 84.5 in January. This marks the lowest level since May 2014, and is even lower than any point during the COVID-19 pandemic.
Dana Peterson, chief economist at the Conference Board, said, “Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened.” All components of the index saw declines.
The Expectations Index, which gauges short-term outlooks for income, jobs, and business conditions, dropped to 65.1, well under the 80-point level often interpreted as a signal of a pending recession. It’s the 12th straight month that this metric has remained below that line.
In addition to economic worries, the survey highlighted that more Americans are increasingly pessimistic about the labor market. The percentage of respondents saying jobs are plentiful fell to 23.9%, while those saying jobs are hard to get rose to 20.8%.
Job growth has slowed dramatically, with only 50,000 jobs added in December, down slightly from 56,000 in November. The U.S. economy added just 584,000 jobs in 2025, a sharp decline from over 2 million in 2024. Economists point to the Trump administration’s tariff-driven trade policy and lingering high interest rates as key reasons for stalled hiring.
Despite labor market weakness, the economy itself continues to grow, buoyed by resilient consumer spending. According to the latest government data, the U.S. economy grew at the fastest pace in two years during Q3 of 2025.
Inflation, however, continues to pressure Americans’ wallets. Survey responses frequently mentioned the cost of fuel, groceries, and housing, along with concerns about medical bills and insurance.
The ongoing trade war is also affecting sentiment. Trump’s recent move to raise tariffs on South Korean imports to 25% has added more uncertainty, with economists warning of potential price hikes on electronics, cars, and medicine.
Although the fundamentals of the U.S. economy remain solid, the steep drop in consumer confidence could dampen growth heading into the midterm election season.
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