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US Consumer Confidence Drops to Lowest Level Since 2014

Published January 28, 2026, 05:13
US Consumer Confidence Drops to Lowest Level Since 2014

US consumer confidence fell to its lowest level since 2014 in January, according to a Conference Board survey. The decline is attributed to concerns among households regarding inflation and the rising cost of living, impacting their spending decisions. A slowdown in consumption poses a negative factor for the US economy, as consumer spending accounts for two-thirds of GDP. Dana Peterson, chief economist of the research team, highlighted that all five components of the index deteriorated, leading to this low level. The situation is even worse than the levels recorded during the Covid-19 pandemic. Economist Oliver Allen of Pantheon Macroeconomics notes that the decline is linked to the stagnation of real incomes and the low personal savings rate. Consumers are pessimistic about current business conditions and employment prospects. Heather Long, chief economist at Navy Federal Credit Union, adds that geopolitical uncertainty, particularly in regions like Venezuela and Greenland, as well as concerns about the US Federal Reserve's policy, contribute to Americans' economic frustration. This situation creates challenges for the government ahead of the 2026 midterm elections.