Following a decline in December, consumer confidence slipped again in January from 66.7 to 58.6, according to the Conference Board Consumer Confidence Index.

"Consumer confidence posted another sharp decline in January, erasing all of the gains made through 2012," says Lynn Franco, director of economic indicators at the Conference Board. "Consumers are more pessimistic about the economic outlook and, in particular, their financial situation. The increase in the payroll tax has undoubtedly dampened consumers' spirits, and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock."

Additionally, respondents report feeling worse about current conditions in January, the research finds. In fact, 16.7 percent of respondents believe business conditions are good, a drop from 17.2 percent last month, and 27.4 percent of respondents say business conditions are bad, a slight uptick from 26.3 percent.