US Economic Confidence Hits Decade Low Despite Trump's Tariff Claims

• Americans' confidence in the US economy has dropped to its lowest level since May 2014, falling below pandemic-era lows.
• The Conference Board’s consumer confidence index decreased to 84.5 in January 2026 from 94.2 in December.
• Recession fears are deepening, with a key short-term expectations measure falling to 65.1, well below the 80-mark signaling an impending recession.
• Concerns over inflation (fuel, grocery prices), tariffs, trade, politics, and the labor market are weighing heavily on sentiment.
• The labor market shows signs of strain, with job creation slowing significantly and employers reluctant to hire amid uncertainty.

Why It Matters: Despite economic growth, US consumer confidence has plummeted to a decade low due to inflation and recession fears.