US Consumer Confidence Falls to Lowest Since 2014

U.S. consumer confidence plunged to its lowest level since 2014 in January, reflecting widespread American anxiety over financial futures amid persistent economic pressures.

The Conference Board reported Tuesday that its consumer confidence index fell 9.7 points to 84.5, dipping below the troughs recorded during the COVID-19 pandemic. This marked a significant downturn, with the expectations subindex, which gauges short-term outlooks on income, business conditions and the job market, dropping 9.5 points to 65.1. That figure remained well under 80, a threshold often associated with impending recession risks, extending a streak of 12 consecutive months below the mark. Meanwhile, the present situation index, assessing current economic conditions, declined 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, chief economist at the Conference Board. All five components of the index showed deterioration, pushing the overall measure to its weakest point since May 2014.

Survey respondents cited elevated worries about inflation, particularly in gas and grocery prices,...