US consumer confidence sinks to lowest in 12 years—people worried about jobs
US consumer confidence just hit its lowest point since 2014, dropping to 84.5—even lower than during the pandemic—despite unemployment being relatively low at 4.4%.
Both current outlook and future expectations fell sharply, with the Expectations Index now well below the level that signals recession risk.
Job worries are driving the gloom
Fewer people feel jobs are "plentiful" (down to 23.9%), and 15.6% expected business conditions to improve six months hence.
This dip in optimism spans all ages and political backgrounds.
As Dana Peterson from The Conference Board put it, "Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened."
Not everyone's feeling it—but spending could take a hit
Interestingly, another survey from the University of Michigan shows rising sentiment, so not all signs point down.
Still, with more people anxious about job security and prices climbing, there's real worry that folks might cut back on spending—and that could slow down economic growth even more.