FI showroom red and grey logo
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...

More Showroom

Image of Honda 'H' emblem
Showroomby Hannah MitchellMarch 25, 2026

Afeela EV Brand Fails to Leave the Factory

Sony-Honda venture cancels two planned models, the first of which had been pegged for a mid-2026 California delivery debut. The brand’s direct sales had been challenged by the state’s auto dealers, but the venture cites Honda’s EV retreat.

Read More →
row of SUVS in background with red and white text saying inventory with a down arrow and sales pace with an up arrow
Industryby Lauren LawrenceMarch 23, 2026

Used-Vehicle Sales Jump in February

Softening prices, rising credit availability and higher tax refunds could be behind February’s sales pace rise and accompanying dip in inventory, according to Cox Automotive.

Read More →
Graphic showing the wholesale weekly price index for 2- to 6-year-old vehicles
ShowroomMarch 17, 2026

Black Book: Weekly Market Update

The wholesale automotive market fared remarkably well given the U.S.-Israel war on Iran, Black Book analysts reported.

Read More →
Ad Loading...
Photo of line of new cars on a lot
Showroomby Hannah MitchellMarch 16, 2026

FTC Targets Auto Dealers Over ‘Deceptive Pricing’

The agency sent warning letters to dozens of auto groups about what it described as illegal practices and urged them to ensure their pricing policies enable transparency with consumers.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ford pickup truck grill with company insignia
Showroomby Hannah MitchellMarch 10, 2026

Ford Engineers Tinker With EV Cost, Range

The automaker says its California skunk works is already finding efficiencies to lighten traditionally heavy electric vehicles for lower cost, plus extended range.

Read More →
Ad Loading...
Graphic showing used-vehicle days to turn rate
Showroomby StaffMarch 10, 2026

Black Book: Weekly Market Update

Both vehicle values and conversion rates sped up last week as two segments outperformed in the pre-spring burst of buying.

Read More →
Photo of Chevrolet Bolt on a beach
Showroomby Hannah MitchellMarch 9, 2026

Economical Electric

GM says it sells the cheapest electric vehicle in the U.S. market. It explains how it made improvements to the entry-level EV while keeping its price down.

Read More →
Showroomby Hannah MitchellMarch 4, 2026

Georgia Dealership Sold

A Tennessee-based automotive group with deep industry history picked up the well-established Honda store, rebranding it.

Read More →
Ad Loading...
Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →