US Consumer Confidence Plummets Dramatically in January

Consumer confidence in the United States experienced a significant decline in January 2026. According to the January Consumer Confidence Survey, conducted by The Conference Board, the Consumer Confidence Index fell by 9.7 points to 84.5, marking its lowest level since May 2014. This drop surpasses even the levels witnessed during the COVID-19 pandemic.

Key Metrics of Consumer Confidence

The Present Situation Index, which reflects current business and labor market conditions, decreased by 9.9 points to 113.7. Meanwhile, the Expectations Index, gauging consumers’ outlook for the near future, fell 9.5 points to 65.1. This figure is concerning as it sits well below the 80-point threshold typically associated with impending recessions.

Data collected up to January 16, 2026, reveals that all five components of the Consumer Confidence Index contributed to the overall decline. Dana M. Peterson, Chief Economist at The Conference Board, noted that consumer concerns about both present and future economic conditions have deepened dramatically.

Present Situation and Future Expectations

• Present Situation Index: 113.7 (down from 123.6)
• Expectations Index: 65.1 (down from 74.6)

Confidence regarding current business conditions deteriorated, with net positive views declining to just +0.1%. The sentiment surrounding employment conditions also worsened, as the labor market differential dropped noticeably.

Demographic Insights

Consumer confidence fell across all age groups in January. However, individuals under 35 years old remained more optimistic than their older counterparts. Confidence among various income brackets also declined, with consumers earning less than $15,000 exhibiting the least optimism.

Consumers identified multiple economic concerns. Frequent mentions included inflation, rising oil and gas prices, and grocery costs. The political landscape, tariffs, and the state of the labor market were also highlighted as key issues.

Changes in Spending Behavior

The decline in consumer confidence has affected purchasing plans significantly. Many consumers reported they were less inclined to buy large-ticket items. Only a small percentage expressed confidence in buying new cars, while plans for purchasing used cars increased moderately.

• Spending Trends:
• Restaurants, bars, and take-out continue to be popular spending categories.
• Increased intentions for travel-related services were noted despite overall drop in vacation plans.

Looking Ahead: Economic Predictions

Consumers are increasingly cautious about future economic conditions. Expectations for business and job availability six months from now are bleak, with both outlooks showing marked deterioration. Although fewer consumers anticipated an income decline, optimism about income growth also fell.

Overall, consumer confidence declined in January 2026, leading to heightened caution in spending and adjusting expectations for the future, as various economic factors weigh heavily on consumer sentiment.

This data was sourced from the Consumer Confidence Survey, which is based on an online sample facilitated by Toluna. The results underscore the challenges facing the U.S. economy moving forward.