Americans losing confidence in US economy amid Trump's many claims and threats, shows latest index

Mentions of tariffs and trade, politics, and the labour market also rose in January, as did comments about health insurance and war

Americans are losing confidence in their country's economy at a time when Donald Trump claims to be boosting it with “trillions of dollars” in tariffs.

The US consumer confidence index has fallen below even the lowest readings during the Covid pandemic of 2020-21. (Representative/Reuters File Photo)

The US consumer confidence index has fallen below even the lowest readings during the Covid pandemic of 2020-21, and there are other numbers that emerged on Tuesday that showed the country might be headed for recession, news agencies AP and AFP reported.

The US Conference Board’s gauge went down to 84.5 for January 2026, from 94.2 last month, data out Tuesday showed. This figure is also the lowest since May 2014, and fell short of all estimates in a survey of economists, Bloomberg reported.

This essentially means Americans are growing increasingly concerned about their financial prospects.

Further, a measure of Americans’ short-term expectations for their income, business conditions and the job market tumbled 9.5 points to 65.1, well below 80, a marker that signals a recession ahead.

It’s the 12th consecutive month that this reading has come in under 80, continuing to heighten worries while Trump's “America First”, “Make America Great Again” and other such slogans fuel his seemingly protectionist and allegedly dodgy policies on multiple fronts — diplomatic, economic, and outright threats of war.

Consumers’ assessments of their current economic situation slid by 9.9 points to 113.7.

‘US consumers concerned about both the present and future'

“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said Dana Peterson, the Conference Board’s chief economist.

"All five components of the index deteriorated, driving the overall index to its lowest level since May 2014 — surpassing its COVID19 pandemic depths,” Peterson added.

There were increased references to inflation, including gas and grocery prices, in the surveys that inform that index.

Mentions of tariffs and trade, politics, and the labour market also rose in January, as did comments about health insurance and war.

Job prospects dim

Perceptions of the job market also declined. The survey reported that 23.9% of consumers said jobs were “plentiful", down from 27.5% in December. Also, 20.8% of consumers said jobs were “hard to get", up from 19.1%.

The US labour market has been stuck in a “low hire, low fire” state, economists say, as businesses remain cagey to uncertainty over Trump’s tariff moves.

Earlier this month, the government reported that employers added just 50,000 jobs in December, nearly unchanged from 56,000 in November.

The unemployment rate is 4.4%.

Job gains have been subdued all year, particularly after April’s “liberation day” tariff announcement by Trump. The economy gained just 584,000 jobs in 2025, sharply lower than that more than 2 million added in 2024.

This comes even as the US economy in terms of size keeps growing, often beyond projections. Powered by strong consumer spending, the US economy grew at the fastest pace in two years from July through September, according to the government’s latest estimate. But confidence about the future is a worry even for the present, the survey shows.