"California consumers started 2026 on an anxious note, with their collective confidence in the economy falling to a five-year low. My trusty spreadsheet's review of the Conference Board's Consumer Confidence Index for January showed a 28% decline from December in California's shopper pysche. It's a sharp reversal from a steep jump in the index, which is based on consumer surveys, seen between November and December."
"Taking a longer-term view, California confidence is down 25% since January 2025, when Donald Trump started his second presidential term. This is the lowest California confidence score since December 2020 - when coronavirus was twisting the economy. Optimism is also 22% below the average results since 2007. Consumer confidence is a critical part of the business climate, as their spending habits account for roughly two-thirds of economic activity. Pessimistic shoppers may skip or delay various purchases - especially pricey ones like homes or autos."
California consumer confidence fell sharply at the start of 2026, dropping 28% from December and 25% since January 2025. The index reached its lowest level since December 2020 and sits 22% below the long-term average since 2007. The present-situation subindex declined 32% in January and is down 31% year-over-year, while the expectations subindex fell 24% for the month and 20% year-over-year. Consumers express concern about slowing job growth and persistent inflation. Reduced confidence threatens consumer spending, which accounts for roughly two-thirds of economic activity, and may delay large purchases such as homes and autos.
Read at The Mercury News
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