WASHINGTON (AP) 鈥� 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鈥� short-term expectations for their income, business conditions and the tumbled 9.5 points to 65.1, well below 80, the marker that can signal a recession ahead. It鈥檚 the 12th consecutive month that reading has come in under 80.
Consumers鈥� assessments of their current economic situation slid by 9.9 points to 113.7.
鈥淐onfidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,鈥� said Dana Peterson, the Conference Board鈥檚 chief economist. 鈥滱ll five components of the index deteriorated, driving the overall index to its lowest level since May 2014 鈥� surpassing its COVID19 pandemic depths.鈥�
Respondents鈥� 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鈥檚 survey reported that 23.9% of consumers said jobs were 鈥減lentiful,鈥� down from 27.5% in December. Also, 20.8% of consumers said jobs were 鈥渉ard to get,鈥� up from 19.1% the month previous.
The country鈥檚 labor market has been stuck in a 鈥渓ow hire, low fire鈥� state, economists say, as businesses stand pat due to uncertainty over Trump鈥檚 tariffs and the lingering effects of elevated interest rates.
Earlier this month, the government reported that employers , nearly unchanged from 56,000 in November. The unemployment rate is 4.4%.
Job gains have been subdued all year, particularly after April鈥檚 鈥渓iberation day鈥� tariff announcement by Trump. The economy gained just 584,000 jobs in 2025, sharply lower than that more than 2 million added in 2024.
鈥淭he dramatic drop on confidence is a direct result of the hiring recession,鈥� said Heather Long, chief economist at Navy Federal Credit Union. 鈥淭he fact that 2025 was the weakest year for job gains outside of a recession since 2003 is not going over well with the middle class.鈥�
鈥淭his is a warning sign to policymakers that they need to focus on affordability and reviving hiring in 2026,鈥� Long added.
The softening job market comes even as the U.S. economy keeps growing, often beyond projections.
Powered by , the U.S. economy from July through September, according to the government鈥檚 latest estimate.
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