U.S. consumer confidence falls to lowest level since spring 2014

The Conference Board reported its consumer confidence index fell 9.7 points to 84.5 in January, the lowest since May 2014, as concerns about job availability and prices rose.

U.S. consumer confidence fell sharply in January, the Conference Board reported, reaching its weakest level in more than 11 years. The decline reflects rising concerns about job availability and persistent price pressures. The deterioration was broad across political groups and was strongest among people aged 35 and over and some lower- and higher-income households. The survey's cutoff date was Jan. 16. Key facts: - The Conference Board's consumer confidence index dropped 9.7 points to 84.5 in January, the lowest reading since May 2014. - Consumers' expectations were the lowest in nine months, and mentions of prices, oil and gas, and food and grocery costs remained elevated. - The share saying jobs were "plentiful" fell to 23.9%, the lowest since February 2021, while 20.8% said jobs were "hard to get," the highest since February 2021. - The survey's labour market differential declined to 3.1 from 8.4 the prior month, a measure that correlates with unemployment trends. - Investors largely shrugged at the report: stocks traded higher, the dollar fell, and U.S. Treasury yields were mixed. - The survey showed fewer planned big-ticket purchases and a drop in intentions to buy a home; separate data showed modest month-over-month gains in single-family house prices. Summary: The report indicates a weaker consumer mood and softer perceptions of the labour market, which can be associated with slower household spending. Economists cited in the report did not expect the decline in confidence to change the Federal Reserve's widely expected decision to leave interest rates unchanged at its upcoming meeting. Undetermined at this time.