By Nmesoma Okechukwu
- Conference Board’s Consumer Confidence Index for January declined to a reading of 84.5, the lowest since 2014
- As of 2024–2025, over a quarter of Black households in the United States are considered higher-income, defined as earning $100K or more annually
2026 more or less started off on the wrong foot with consumer confidence plummeting to its lowest levels since 2014 this January. Conference Board’s Consumer Confidence Index for January, released Tuesday, declined 9.7 points to a reading of 84.5, the lowest since 2014. The sentiment about the path of the labor market is also one of pessimism. Per the recent Conference Board survey, 55% of respondents said it was difficult to land a job, the highest since the pandemic.
Why This Matters: It’s possible that consumer discretion will predictably surge to an all-time high in response to declining confidence. In addition to this, the labor market has effectively stalled, with chief economist at LPL financial, Jeffrey Roach, telling CNN, “expect the unemployment rate to rise. My expectation is the domestic economy could approach 4.6% unemployment in (the second quarter) with upside risks later in the year. This will weigh on retail sales in these coming months.” If so, how will businesses, especially black-owned businesses, survive the new consumer sentiment?
Shaping Consumer Spending
To this day, consumer spending remains a powerful U.S growth driver, representing nearly two-thirds of U.S. economic output. From this chunk, higher-income consumers contribute the greatest lift.
As of 2024–2025, over a quarter of Black households in the United States are considered higher-income, defined as earning $100,000 or more annually. This comes from seeing an 83% growth in the past decade, effectively allowing Black families to immensely contribute to the shaping of the economic growth in America.
Spend During Economic Turndowns
Some of the key ways Black consumers have historically adapted to a shifting consumer sentiment is to turn to the community, in other words, “Buy Black” as well as prioritize essential items. This level of cooperative economics has allowed black-owned businesses to boost their brands even amid consumer pessimism.
However, supporting Black-owned businesses is not a hard and fast rule, especially if there are bargains to be had outside of the community. Having said this, it’s good to note that black consumers possess a higher brand loyalty than their white counterparts, and often seek brands that align with their values or offer better quality for price.
Situational Awareness: With 2026 opening with a high degree of consciousness in terms of consumer spending, and with systemic inequities persisting, Black-owned businesses now more than ever need to be strategic in their offerings in order to preserve an enduring competitive advantage. It’s a proven fact that brands rooted in cultural and traditional identity are able to easily adapt to challenging situations, whilst maintaining a competitive advantage.
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