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.
"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."
Read at The Mercury News
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