Consumer confidence plunges to lowest level since 2014
The Conference Board index fell 9.7 points in January to 84.5 as both current conditions and short term expectations weakened across demographic groups.
- The Consumer Confidence Index dropped 9.7 points to 84.5 in January, its lowest reading since May 2014.
- The Present Situation Index fell to 113.7 while the Expectations Index slid to 65.1, which is below the 80 level that often signals recession risk.
- All five components of the index worsened and confidence fell across age, income, and political groups, with Gen Z remaining the most optimistic.
- Plans to buy big-ticket items and homes declined, purchases of used cars and smartphones rose, and planned spending on services weakened.
- Average 12-month inflation expectations rose while the median fell, and the share of consumers expecting higher interest rates in a year edged down.
- The survey is based on an online sample with a January 16 cutoff, and the Conference Board will publish the next reading on February 24 at 10 AM ET.