Consumer credit growth accelerated in October as revolving credit increased but non-revolving credit declined. Auto loan credit access tightened sharply in November across all channels and across all lender types as every factor moved against consumers. Used-vehicle sales likely declined in November, and wholesale used-vehicle prices declined again. The Manheim Used Vehicle Value Index is … Continued

Financial markets have taken another ride on the Wishful Thinking About Fed Policy roller coaster over the last week. Fed Chair Jerome Powell sent the invitation to come on board with a speech he gave last Wednesday, the final day of November, at the Brookings Institute. The speech gave markets what they wanted to hear. … 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.

Job growth in November did not slow as much as expected or as desired by the Fed. The unemployment rate was steady at 3.7%, and wage growth accelerated. Jobless claims increased throughout November. Continuing claims have risen from historic lows but are at the highest levels in 38 weeks. Consumer spending growth accelerated in November … Continued

The release of new data was limited last week due to the Thanksgiving holiday. What news there was represented a mixed bag. New home sales were stronger than expected. Jobless claims increased. Consumer sentiment showed mixed views. The Fed released not surprising notes from its November meeting. New Home Sales and Inventory Deliver Surprising Increases … Continued

Retail sales growth accelerated in October and was stronger than expected. Adjusted for inflation, retail sales were up slightly from a year ago. Residential construction slowed again in October, with single-family activity driving much of the decline. Existing home sales declined in October for the ninth straight month. Initial jobless claims declined in the latest … Continued

Financial markets shifted to the positive last week, with weaker-than-expected inflation data pointing to an eventual end to rate increases. However, the Fed will likely raise rates by 50 basis points (BPs) in December as planned unless something more dramatic changes between now and December 14. We get November employment and Consumer Price Index (CPI) … Continued

The October employment report saw a modest slowing in job creation, along with a slight increase in the unemployment rate and a modest slowing in wage growth. Still, the labor market remains strong and is a key reason why the Fed believes it is too soon to pause on rate increases. The Fed increased the … Continued

As expected, the Fed raised the target for the Federal Funds Rate by three-quarters of a percentage point today, which was the fourth straight jumbo increase this year. The biggest news from the Fed’s move was the indication that future increases may be smaller and slower to come. The Fed has now moved the target … Continued

Last week featured mixed news with enough strength in the economy and consumer spending to result in more rate increases and communication of more increases to come from the Fed this week. Check back on Smoke on Cars for additional commentary after the announcement on Wednesday, November 2. The third quarter saw a strong rebound … Continued