Consumer confidence in the United States plunged in January to its lowest level since 2014, survey data showed on Tuesday, as American households continue to fret about inflation and elevated costs of living.

The Conference Board's Consumer Confidence Index slumped by 9.7 points from December to 84.5, with consumers growing more cautious about major spending decisions.

"Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened," said the research group's chief economist Dana Peterson.

She added that all five components of the index worsened, driving the overall level to its lowest since May 2014 – "surpassing its Covid-19 pandemic depths."

Views on current business conditions have "dwindled to just barely positive," while perceptions of employment conditions also weakened, the report said.

Meanwhile, consumers tended to be pessimistic about factors influencing the economy.

"References to prices and inflation, oil and gas prices, and food and grocery prices remained elevated," Peterson said.

"Mentions of tariffs and trade, politics, and the labour market also rose in January, and references to health/insurance and war edged higher," she added.

Consumers also increasingly indicated that they were not planning big-ticket purchases in the next six months, suggesting that they are becoming more selective in their spending.

"Used cars, furniture, TVs, and smartphones remained the most popular within their categories for future purchases," The Conference Board said. (AFP)