WASHINGTON— U.S. consumer confidence plunged in January to its lowest level in more than a decade, signaling growing anxiety about economic conditions and the outlook for jobs and income, according to new data from The Conference Board.
The Conference Board Consumer Confidence Index fell 9.7 points to 84.5 in January, down from an upwardly revised 94.2 in December. The drop erased a brief rebound seen last month and pushed confidence to its weakest reading since May 2014, falling below levels recorded during the COVID-19 pandemic. The survey’s cutoff date was Jan. 16, 2026.
Both current conditions and future expectations deteriorated sharply. The Present Situation Index, which measures consumers’ views of business and labor market conditions, dropped 9.9 points to 113.7. The Expectations Index slid 9.5 points to 65.1—well below the 80 threshold that historically signals recession risk.
“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.
Respondents reported weakening views on current business conditions and a softening labor market, with fewer consumers describing jobs as plentiful. Expectations for business activity, employment, and household income over the next six months also worsened. Confidence declined across all age, income, and political groups, with the steepest pullback among Independents. While younger consumers and Gen Z remained comparatively more optimistic, sentiment across all demographics trended lower.