Today’s Consumer Confidence report showed that consumers are off to a grim start in 2026 as the Overall Index plummeted to its lowest level in 12 years! This means consumer attitudes are lower today than they were at any point throughout the COVID-19 pandemic crash and shutdown. The collapse in the Overall Index was driven by both assessments of the Present Situation, which fell 9.9 points, and Future Expectations which dropped 9.5 points. Rapid downturns in the Consumer Confidence Index tend to accompany reduced spending and rising recession risk, making this a worrisome development.
The report also contained a warning for the job market, as the percentage of consumers who feel jobs are plentiful plummeted nearly 4 percentage points. The continued fall in Jobs Plentiful is a troubling sign that the labor market is on unsteady footing.
As alarm bells from consumers of weakness in the U.S. economy and job market grow louder, it is essential to maintain a disciplined safety-first strategy to be prepared if recessionary blocks fall into place.