In a new sign that Americans are concerned about the future of the economy, a monthly index produced by the non-profit New York-based Conference Board reveals a significant decline in consumer confidence.
That confidence has seen a collapse in the last four weeks, said Dana Petrson, chief economist of the Conference Board, reflecting consumer concerns about “both the present situation and expectations for the future.”
The index dropped to an 84.5 reading, declining nearly 10 points from where things stood in December.
That figure represents the lowest number recorded by the Index since the spring of 2020 when the economy was being walloped by the Covid 19 pandemic.
In a reading suggesting a kind of generational unity, Baby Boomers and members of Generation X, the Millennial Generation, and Generation Z all indicated declining confidence in the national economy, with Boomer and Generation X respondents expressing the most pessimistic views.
Democrat and Independent voters represented views relegating them to a 70 reading, while Republicans, who have been generally more optimistic in recent months, represented a 120 reading. But even that relatively buoyant GOP response was down from last fall when it came in at 130.
As an indication of anticipated future trends, just under 23% of all respondents said they thought business conditions in the country would worsen by early summer; with 12.6% saying they expected their incomes to decline.
While the job market has been strong, and the current unemployment rate is at 4.4%, some 38.5% of respondents said they thought there would be fewer available jobs in the next six months.
All respondents in January, compared with last month, said they planned to spend less in the coming months on internet services, health care, beauty and personal care, and utilities.
At the same time, respondents still must eat, with 26.9% saying they anticipated increasing their restaurant, bar, and take-out spending in the months ahead. That figure is up from around 24% in November.
The Consumer Confidence Index, first instituted by the Conference Board in 1967, surveys around 5,000 households nationally and is generally regarded as the leading indicator of consumer sentiment in the country.
January 29, 2026
By Garry Boulard
Photo courtesy of Unsplash
