U.S. consumer confidence weakened sharply in January, falling to its lowest level in nearly a decade, as households grew increasingly concerned about high prices and a cooling labor market, according to data released on Tuesday.
The Conference Board reported that its consumer confidence index dropped by 9.7 points to 84.5 in January. This is the weakest reading since May 2014. The decline was steeper than expected, as economists surveyed by Reuters had forecast a reading of 90.9.
According to Dana Peterson, chief economist at the Conference Board, consumer sentiment remains tilted toward pessimism. Written responses from participants continued to highlight concerns about rising prices and inflation. References to oil and gas costs, as well as food and grocery prices, stayed elevated. At the same time, mentions of tariffs and trade issues, political uncertainty, and labor market conditions increased. Concerns related to health insurance and global conflicts also edged higher.
