Confidence in U.S. Economy Falls to Lowest Level Since 2014

It’s been a dozen years since Americans have felt this disillusioned about the U.S. economy.

Consumer confidence declined in January, hitting its lowest level since 2014, according to figures released by The Conference Board, a global nonprofit think tank and business membership organization.

The Conference Board said this week that its consumer confidence index fell 9.7 points to 84.5 in January, falling below even the lowest readings during the Covid pandemic, according to a report from The Associated Press, which reported that a measure of Americans’ short-term expectations for their income, business conditions and the job market dropped 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 fell 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, according to the AP. ”All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 — surpassing its COVID19 pandemic depths.”

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, according to the AP report.

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.