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Auto Market Weekly Summary

Job growth is slowing as the underemployment rate declines to near historic lows, but job creation in July was exactly in line with the average monthly creation this year and what was expected. Wages are growing again, but hours worked are falling, limiting the positive impact for consumers. Fed cuts rates: The Fed cut rates last … Continued

The Fed Lowered Interest Rates Today. Unfortunately, It’s Unlikely Car Buyers Will Benefit Much.

Today’s rate cut was viewed by the market as a certainty. The Fed had ample opportunities to set different expectations, but only affirmed the market’s view at every turn. In terms of policy, what mattered more today was the amount of the July cut and the language regarding future cuts. We got a quarter cut—the first cut … Continued

Auto Market Weekly Summary

The economy is still growing, thanks primarily to the consumer and an expanding Federal deficit. The first estimate of real GDP growth in the second quarter was 2.1%, which was better than expected but indeed a slowdown from Q1 and last year. Interest rates dropping: Interest rates appear to be heading lower with expectations for 2-3 … Continued

Auto Market Weekly Summary

Consumer spending is robust and likely drove much of the second-quarter economic growth as households were confident about the economy. However, economic indicators, such as new construction activity, cast doubt on the sustainability of this growth. Labor shortages, supply disruptions, higher input prices and uncertainty about tariffs are limiting what businesses can do. Robust retail … Continued

A Decade of Economic Expansion

Congratulations, fine reader, you are part of a winning team! Well done. You’re an important part of an economic expansion that’s been trucking along for 121 months now, a new post-World War II milestone. Our record upward run began back in June 2009, the month General Motors, following Chrysler, filed for bankruptcy protection and the … Continued

Auto Market Weekly Summary

Overall inflation remains very low, helped by lower energy prices. The monthly trend through June gives support for an easing of monetary policy. The financial markets expect the Fed to cut rates at the end of the month. The futures market considers a quarter point cut in July as a certainty, and odds favor two … Continued

Auto Market Weekly Summary

Manufacturing has been the weakest part of the economy this year as trade issues have resulted in declining orders. Despite that weakness, the job market continues to be solid, albeit with decelerating gains. June saw rebounding job growth from May’s very low gain. Low unemployment, stagnate wages: Despite low unemployment, wage growth is decelerating, which … Continued

Auto Market Weekly Summary

The economy is slowing and consumer confidence is weakening but the consumer keeps spending, for now, though less on vehicles since retail auto sales are declining. Economy slowing: The economy gave us a head-fake of 3.1% growth in the first quarter, as that growth on paper was supported by growth in inventories and exports, which … Continued

Mid-Year Review Replay Available

At the 2019 Mid-Year review held on June 26, the Cox Automotive industry insights team presented their view of the first half of the year. Watch the replay below to learn from Cox Automotive Chief Economist Jonathan Smoke, Charlie Chesbrough, senior economist, and Michelle Krebs, senior industry analyst, how the automotive industry has fared for … Continued

Auto Market Weekly Summary

The “bad news is good news” cycle continued last week as the stock market cheered the Fed acknowledging trade-related economic weakness and low inflation. The Dow Jones Industrial Index ended the week up almost 700 points. Bond yields have tumbled as the financial market sees rate declines as a certainty later this year with a … Continued