U.S. Consumer Confidence Hits Seven-Year Low

January saw an unexpected decline in U.S. consumer confidence, reaching its lowest level since 2014 due to heightened concerns over high prices and a weak labor market, according to the Conference Board. The consumer confidence index dropped 9.7 points to 84.5, missing the forecasted 90.9.

In an unexpected downturn, U.S. consumer confidence plummeted in January, hitting its lowest point since 2014. Accentuated by rising anxieties over inflation and a tepid job market, the consumer confidence index fell 9.7 points to 84.5, as revealed by the Conference Board on Tuesday.

Chief Economist Dana Peterson noted growing consumer pessimism influenced by inflation, oil and gas prices, and food costs. Responses also indicated increased concern over tariffs, trade, politics, and the labor market, along with health insurance and war considerations.

The findings contradicted economists' predictions, who initially estimated the index would be at 90.9, underscoring the unexpected downturn in consumer sentiment influenced by economic pressures.