American consumer confidence plummeted to its lowest point in over a decade during January, signaling deepening concerns about the nation’s economic direction and personal financial security.

Confidence Index Hits Rock Bottom

The Conference Board reported Tuesday that consumer confidence dropped 9.7 points to 84.5 in January, marking the steepest decline since May 2014. The reading fell below even the darkest days of the COVID-19 pandemic, when businesses shuttered nationwide, and unemployment soared. Dana Peterson, the Conference Board’s chief economist, described the situation as a complete collapse across all measured categories.

The current economic conditions assessment declined 9.9 points to 113.7, reflecting Americans’ immediate concerns about their financial situations. Survey respondents increasingly mentioned inflation pressures, particularly rising gas and grocery prices that strain household budgets. References to tariffs, trade policies, political uncertainty, and labor market conditions also increased significantly compared to previous months.

Job Market Concerns Mount

The employment outlook deteriorated as fewer Americans view jobs as plentiful. Only 23.9 percent of respondents considered jobs abundant, down from 27.5 percent in December. Meanwhile, 20.8 percent described jobs as difficult to obtain, rising from 19.1 percent the previous month. Economists characterize the current labor market as a low-hiring, low-firing environment where businesses remain cautious.

Job creation slowed dramatically throughout 2025, adding only 584,000 positions compared to over two million in 2024. Heather Long, chief economist at Navy Federal Credit Union, attributed the confidence decline directly to what she termed a hiring recession affecting middle-class families nationwide.

Economic Warning Signs

The sharp confidence drop serves as a warning signal for policymakers despite continued economic growth that often exceeds projections. Long emphasized the need for focused attention on affordability issues and employment revival strategies for 2026. Business uncertainty surrounding potential tariff implementations and elevated interest rates continues to influence hiring decisions across industries, creating a cautious atmosphere that dampens consumer optimism about prospects.