American consumer confidence fell sharply in January to its lowest level in more than 11 years, dropping below the lows recorded during the COVID-19 pandemic, according to The Conference Board’s latest survey.
The Conference Board Consumer Confidence Index declined 9.7 points to 84.5 (1985=100) in January, down from a revised 94.2 in December. The December reading was revised up by 5.1 points, indicating a brief improvement before the steep January decline continued the overall downward trend.
This latest figure represents the lowest level since May 2014, when the index stood at 82.2, and signals a marked worsening in consumer sentiment amid ongoing economic uncertainty.
The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, dropped 9.9 points to 113.7. The Expectations Index, which reflects short-term outlooks for income, business, and labor conditions, fell 9.5 points to 65.1. The Expectations Index has now remained below the 80 threshold – a level that has historically signaled an increased risk of recession – for 12 consecutive months.
“Confidence collapsed in January as consumer concerns about both the present situation and expectations for the future deepened,” said Dana M. Peterson, Chief Economist at The Conference Board. “All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2) and surpassing its COVID-19 pandemic lows.”
Consumer write-in responses showed continued pessimism, with frequent mentions of prices and inflation, oil and gas prices, and food and grocery costs. References to tariffs and trade, politics, the labor market, health and insurance issues, and war also rose noticeably in January.
Perceptions of the labor market weakened significantly. The proportion of consumers describing jobs as “plentiful” declined, while the share viewing jobs as “hard to get” increased. Expectations for business conditions and job prospects six months ahead worsened, and household income outlooks became less optimistic.
The survey, conducted by Toluna with a cutoff date of January 16, 2026, also indicated growing caution about big-ticket purchases and spending on services over the next six months. Intentions to buy major household items declined, though plans for certain travel-related services showed some unexpected resilience despite lower overall vacation intentions.
The drop in confidence appeared widespread, affecting all age groups, income levels, and political affiliations, with Independents recording the largest decline.
Consumer confidence is closely watched because consumer spending accounts for roughly 70 percent of U.S. economic activity. A persistently low Expectations Index has preceded economic slowdowns in previous cycles.
The complete report and additional data are available from The Conference Board at conference-board.org.
LincolnCitizen.com will continue to track national economic indicators and their potential effects on local economies in Lincoln and across Nebraska.
