January US Consumer Confidence Falls to 12-Year Low on Inflation, Tariff, Political and Labor Market Concerns

10:17 AM EST, 01/27/2026 (MT Newswires) -- The Conference Board's measure of consumer confidence fell to 84.5 in January from 94.2 in December, below a reading of 91.0 expected in a survey compiled by Bloomberg, hitting the lowest point since May 2014.

The present situation reading fell to 113.7 from 123.6, while the expectations reading decreased to 65.1 from 74.6.

The current assessment of both employment and business conditions both deteriorated in January.

"Consumers' write-in responses on factors affecting the economy continued to skew towards pessimism," Dana Peterson, Chief Economist at The Conference Board. "References to prices and inflation, oil and gas prices, and food and grocery prices remained elevated. Mentions of tariffs and trade, politics, and the labor market also rose in January, and references to health/insurance and war edged higher."

The monthly consumer confidence index from the Conference Board measures consumer sentiment in the current month, with the headline index a combination of the present situation and expectations for the near future. The report also includes the current and future assessments for business and employment conditions.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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