Consumer Confidence Reaches Lowest Since 2014 Amid Labor Market, Inflation Woes, Conference Board Says

12:44 PM EST, 01/27/2026 (MT Newswires) -- US consumer confidence tumbled this month to its lowest level since May 2014 amid broad-based weakness and concerns about the labor market and inflation, the Conference Board said Tuesday.

The consumer confidence index dropped 9.7 points to 84.5 in January from last month's upwardly revised 94.2. The consensus was for a 91 print in a Bloomberg survey.

"All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 (82.2) -- surpassing its COVID-19 pandemic depths," Conference Board Chief Economist Dana Peterson said.

The present situation measure slumped 9.9 points to 113.7 this month, while the expectations gauge, which covers income, business and labor market conditions, slipped 9.5 points to 65.1, below the threshold of 80 that usually signals a recession ahead, the Conference Board said.

The report showed that 23.9% of consumers said jobs were "plentiful" in January, down from 27.5% last month, while 20.8% said jobs were "hard to get," up from 19.1%. Consumers were also more concerned regarding the labor market outlook this month.

References to prices and inflation, oil and gas prices, and food and grocery prices "remained elevated," while mentions about tariffs, trade policies and the labor market "also rose" this month, Peterson said.

On average, consumers' outlook for one-year inflation rose, though the median rate dropped further, the Conference Board said. Consumers seemed to be more cautious over big-ticket spending over the next six months, while services spending plans were "weaker" this month, according to the report.

"The consumer confidence data had started to look like it was improving in recent months after spending most of 2025 down in the dumps," Jefferies Chief US Economist Thomas Simons said in a note e-mailed to MT Newswires. "However, this month's report shows renewed concern about difficulty in finding a new job after losing one, and an increase in the high-end of inflation expectations."

Last week, a survey by the University of Michigan showed that US consumer sentiment improved in January to the highest reading since August as year-ahead inflation expectations reached a 12-month low.

"We still expect that confidence will not deteriorate meaningfully from current levels, but if we are wrong, a further drop would be concerning," Simons said Tuesday. "Eventually, consumers pulling back on spending because they are worried about a downturn in the economy end up sealing their own fate."

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