US consumer confidence suffered a sharp setback in January, with the Conference Board Consumer Confidence Index plunging -9.7 points to 94.5. The drop pushed confidence to its lowest level since 2014, falling even below levels seen during the pandemic, and marking one of the steepest monthly declines in recent years.
The deterioration was broad-based. Present Situation Index slid -9.9 points to 113.7, while the forward-looking Expectations Index fell -9.5 points to 65.1. The latter is particularly alarming, as readings below 80 have historically been associated with recessions ahead.
According to Dana M. Peterson, confidence “collapsed in January” as concerns about both current conditions and the outlook intensified. She noted that all five components of the index weakened, dragging the headline measure to its lowest level since May 2014.
Peterson added that consumer comments remained heavily skewed toward pessimism. Inflation pressures, especially food, fuel, and energy costs, dominated responses, while mentions of tariffs, trade, politics, and labor market concerns increased. References to health insurance and war also edged higher, reinforcing the picture of households growing more anxious on multiple fronts.
