Confidence among U.S. consumers weakened for a second-straight month, reflecting retreating optimism of both current and future conditions at the start of President Trump’s second term and expectations that inflation will rise again.

The index of consumer sentiment published by research group the Conference Board fell 5.4 points to 104.1, it said Tuesday, a little worse than the 106.0 expected by economists polled by The Wall Street Journal.

The index measuring consumers’ expectations—based on their short-term outlook for income, business and labor-market conditions—fell but remained above the threshold that usually signals a recession ahead, The Conference Board said. Indeed, the proportion of consumers anticipating a recession over the next 12 months was stable near the series low, it noted.

“Consumer confidence has been moving sideways in a relatively stable, narrow range since 2022. January was no exception,” said Dana M. Peterson, chief economist at The Conference Board.

However, all five components used to compile the index declined on the month, with consumers’ assessments of their present situation leading the fall, and pessimism about future employment prospects returning. The fall in sentiment was led by consumers under 55 years old, though those above 55 registered a small uptick in confidence, according to the data.

The result shows consumers cautious about their future situation at the start of the new Trump administration. The cutoff date for the survey was Jan. 20, the date of President Trump’s inauguration.

Ahead of the Federal Reserve meeting this week, average year-ahead inflation expectations increased to 5.3% in January from 5.1% in December, according to the survey.

Still, consumers notably remained bullish about the stock market, though slightly less than at the end of 2024. More than half of consumers expected stock prices to increase over the year ahead, Peterson added.