P&A Providers & Administrators
MenuMENU
SearchSEARCH

Consumer Outlook Dims

The year starts with declined expectations for economic conditions and plans to make big purchases. Used cars, though, are among the top big-ticket categories under consideration.

February 2, 2026
Consumer Outlook Dims

Overall vehicle-buying plans were flat for the month, while six-month moving average outlook on new-car purchases fell and used-car purchase plans increased.

Credit:

Pexels/Kampus Production

2 min to read


Consumer confidence fell in January to a low not seen for nearly 15 years, as plans to buy cars and make other major purchases continued to decline.

The Conference Board’s Consumer Confidence Index fell about 10 points to 84.5. 

Ad Loading...

The nonprofit business membership and research group’s Present Situation Index gauging consumers’ perspective on current business and labor market conditions fell at about the same rate to 113.7.

Meanwhile, its Expectations Index measuring six-month outlook on income, business and labor market conditions also fell about 10 points to 65, which the group considers “well below” its threshold of 80 that typically cues a recession.

In fact, the share of consumers expecting that a recession is very likely in the next 12 months rose, along with the modest percentage who believe the U.S. economy is already in a recession. Those readings, though, aren’t factored into the confidence index.

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

“All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths.”

Ad Loading...

Consumer confidence fell for all age groups, income brackets and political affiliations, especially independents in the latter category, according to the board’s survey.

Affordability concerns, along with anxiety about politics, healthcare expenses and war weighed on many consumers’ minds in regard to economic effects, the board found in write-in survey responses. 

Fewer consumers said they plan to buy high-cost items in the next six months, and more indicated they don’t plan big purchases, while the maybes also rose. Overall vehicle-buying plans were flat for the month, while six-month moving average outlook on new-car purchases declined. Used-car purchase plans, meanwhile, increased.

Expectations for stock prices a year from now fell in January.

A bright spot in the survey findings came in consumers’ current family financial situation perspective, which edged up slightly. Looking to the future, though, outlook eroded.

Ad Loading...

Originally posted on F&I and Showroom

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →