Americans’ consumer confidence in the U.S. economy fell sharply in January to its lowest level since 2014, the Conference Board reported.
The Conference Board said Tuesday that its consumer confidence index dropped 9.7 points to 84.5 in January, a decline below even the weakest readings recorded during the COVID-19 pandemic. The report said the index reflected growing concern about households’ financial prospects.
The Conference Board also reported that a measure of short-term expectations for income, business conditions and the job market tumbled 9.5 points to 65.1. AP reported that this reading—normally watched for warning signs when it drops below 80—had been below 80 for the 12th consecutive month.
A separate gauge of consumers’ assessment of their current economic situation slid by 9.9 points to 113.7, according to the Conference Board survey.
Dana Peterson, the Conference Board’s chief economist, said, “Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” adding that “All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 — surpassing its COVID19 pandemic depths.”
The survey also pointed to lingering concerns about inflation. It said references to inflation, including gas and grocery prices, remained elevated, while mentions of tariffs and trade, politics and the labor market rose in January. The Conference Board’s survey further said comments about health insurance and war increased.
The job market picture deteriorated in the respondents’ answers. The report said 23.9% of consumers described jobs as “plentiful,” down from 27.5% in December, while 20.8% said jobs were “hard to get,” up from 19.1% the month before.
AP also reported that the labor market has been in a “low hire, low fire” state, as businesses stand pat amid uncertainty tied to tariffs and the lingering effects of elevated interest rates. Earlier this month, the government reported employers added just 50,000 jobs in December, nearly unchanged from 56,000 in November, and the unemployment rate was 4.4%.
Heather Long, chief economist at Navy Federal Credit Union, said, “The dramatic drop on confidence is a direct result of the hiring recession.” She added that “The fact that 2025 was the weakest year for job gains outside of a recession since 2003 is not going over well with the middle class,” and said the data are a warning sign “to policymakers that they need to focus on affordability and reviving hiring in 2026.”
The softening confidence and job-related signals arrived even as the U.S. economy continued to grow. AP reported that the economy grew at the fastest pace in two years from July through September, according to the government’s latest estimate. It said the economy gained 584,000 jobs in 2025, sharply lower than the more than 2 million added in 2024.