Consumer Confidence Drops to Lowest Level Since 2014

In January, the overall consumer confidence index slipped to its lowest point in more than a decade, even dipping below the levels recorded during the pandemic.

The Conference Board’s latest survey shows the index fell 9.7 points from December’s reading, landing at the lowest level since May 2014 as people’s views on the current and future economic climate soured.

Consumers’ short‑term outlook for income, business and labor market conditions dropped 9.5 points to 65.1, well below the 80‑point threshold that typically signals a looming recession. Only about 24% of respondents believed jobs were plentiful, down from 27.5% in December.

Hiring data from the same period revealed a weakness that, outside of the pandemic, hadn’t been seen since 2013, underscoring the strain on the labor market.

Responses to open‑ended questions continued to lean toward pessimism. Mentions of inflation, rising energy costs, food prices, trade tensions, politics, and the labor market increased, while references to health insurance and war edged higher.

The decline in confidence spread across all political groups, with the sharpest drop observed among independent voters.

In contrast, the University of Michigan’s Index of Consumer Sentiment showed a modest uptick in January, yet it remains far below the levels seen a year earlier.

These indicators paint a picture of a household outlook that is increasingly cautious, reflecting the ongoing challenges in the job market and broader economic uncertainty.