US Consumer Confidence Plunges to 12-Year Low in January Amid Inflation, Job Concerns

US consumer confidence dropped sharply to 84.5 in January, falling 9.7 points from December's revised 94.2 and hitting its lowest level since May 2014, according to data released by The Conference Board on Tuesday, January 27, 2026. The decline reflects mounting concerns over persistent inflation, a cooling labor market, and policy uncertainty. The Present Situation Index fell 9.9 points to 113.7, a five-year low, while the Expectations Index dropped to 65.1—below the recession threshold of 80 for the 12th consecutive month. Consumers cited high prices for food and gasoline, alongside rising worries about jobs, tariffs, and political conditions. The gap between those viewing jobs as "hard to get" versus "plentiful" widened to its worst level in years.