Economic growth for the third quarter accelerated and was much stronger than expected at 4.9%. Most factors moved to positive, with accelerating growth in consumer spending being a major driver of the growth in the quarter. Consistent with the quarter’s performance, consumer spending growth accelerated in September, but income growth slowed. Personal Consumption Expenditure Index … Continued

The video below is part of a biweekly Auto Market Report series focusing on data and insights that provide a holistic view of the auto industry. Chief Economist Jonathan Smoke leads our effort to translate data and trends into actionable insights. Download this week’s presentation

Retail sales were stronger than expected in September. While category performance was mixed, only clothing and home-related categories were down in the month compared to August. New construction trends were mixed again in September with permits down, starts up, multifamily weak, but single family more stable. Existing home sales declined again in September to the slowest … Continued

The Federal Reserve has new data to consider ahead of its end-of-October meeting, based on the most recent inflation report. Year-over-year inflation was unchanged in September, but core price inflation, which is more relevant to the Fed’s assessment, continues to decline on a year-over-year basis. Consumers are still tapping credit cards but taking out fewer … Continued

The video below is part of a biweekly Auto Market Report series focusing on data and insights that provide a holistic view of the auto industry. Chief Economist Jonathan Smoke leads our effort to translate data and trends into actionable insights. Download this week’s presentation

The Federal Reserve’s efforts to slow the economy and, specifically, the strong labor market are looking less effective, and the bond market does not like the signal it sends for the direction of interest rates.  Job growth in September was much stronger than expected, and prior job numbers were revised up. The unemployment rate was … Continued

Economic growth for the second quarter was unrevised at 2.1%, but revisions to historical data caused last year to be weaker and the first quarter to be stronger. As a result, the second quarter growth rate represented a modest slowing, and consumer spending growth slowed substantially. Consumer spending growth decelerated in August, but income growth … Continued

New construction trends were mixed in August with starts down, permits up, multifamily weak, but single family more stable. Existing home sales declined again in August when a small increase had been expected. Jobless claims are declining in September. The labor market is not as strong as it was a year ago, and claims have … Continued

As expected, the Fed left rates unchanged, at least regarding the official short-term rate policy. However, they made it clear that additional rate hikes could come, as they remain “highly attentive to inflation risks.” The Fed will hold two more meetings in 2023; one on November 1 and another on December 13. The Fed also … Continued

The headline, aggregate measure of inflation increased on a seasonally adjusted basis in August. The Consumer Price Index (CPI) increased 0.6%, up from a 0.2% increase in July. Higher fuel prices were a key driver of the increase in August. The core CPI, which excludes Food and Energy, increased 0.3%, which was up from a 0.2% … Continued