Consumer Confidence Plunges to Lowest Since 2014 as Outlook Sours

Consumer confidence fell sharply in January to its lowest level since 2014, as Americans grew more pessimistic about both current economic conditions and the outlook ahead.

The Conference Board’s Consumer Confidence Index fell 9.7 points to 84.5 in January from an upwardly revised 94.2 in December. Economists polled by Econoday had forecast a reading of 90.0.

The drop was driven by broad weakness in both assessments of current conditions and expectations. The Present Situation Index fell to 113.7 from 123.6, while the Expectations Index dropped to 65.1—well below the 80 level the Conference Board often associates with recession risk.

“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said Dana M. Peterson, chief economist at the