WASHINGTON -- U.S.consumer confidence declined sharply in January, hitting the lowest level since 2014 as Americans grow increasingly concerned about their financial prospects.The Conference Board said Tuesday that its consumer confidence index cratered 9.7 points to 84.5 in January, falling below even the lowest readings during the COVID-19 pandemic.A measure of Americans’ short-term expectations for their income, business conditions and the job market tumbled 9.5 points to 65.1, well below 80, the marker that can signal a recession ahead.
It’s the 12th consecutive month that reading has come in under 80.Consumers’ assessments of their current economic situation slid by 9.9 points to 113.7.“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said Dana Peterson, the Conference Board’s chief economist.”All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 — surpassing its COVID19 pandemic depths.”Respondents’ references to inflation, including gas and grocery prices, remained elevated.
Mentions of tariffs and trade, politics, and the labor market also rose in January as did comments about health insurance and war.Perceptions of the job market also declined this month.The conference board’s survey reported that 23.9% of consumers said jobs were “plentiful,” down from 27.5% in December.Also, 20.8% of consumers said jobs were “hard to get,” up from 19.1% the month previous.Popular ReadsMinneapolis live updates: It 'all goes away' if state gives up criminals, Trump says11 minutes agoWinter storm live updates: Extreme cold moving in after snow21 minutes agoMinneapolis ICE shooting updates: Over 3,000 arrested in Minnesota, DHS saysJan 18, 2:39 PMThe country’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over Trump’s tariffs and ...