COVID-19 cases continue to fall rapidly. Daily cases numbers are back to late December levels. Even with cases down, consumer sentiment, according to the University of Michigan, declined again in the initial February reading. Inflation picked up again in January to record the highest level of year-over-year inflation in 40 years. Wholesale used-car prices did … Continued
The January employment picture was much brighter than expected, as the omicron wave of COVID-19 failed to make a major dent in the tight job market. Job creation, wage growth and workforce participation gained as jobless claims fell. New-vehicle sales were down 10% in January. The seasonally adjusted annual rate (SAAR) of sales improved to … Continued
Economic growth recovered in the fourth quarter, as real GDP growth accelerated to 6.9%, which was the strongest reading for the year. The increase was assisted by large gains in inventories as the worst of the supply chain problems likely was at the end of the third quarter of 2021. However, consumer spending growth ended … Continued
The Fed is moving to tighten U.S. monetary policy in 2022. At its first Fed meeting of the year, the Fed announced that it will soon be appropriate to raise the target rate for the Federal Funds Rate. The Fed’s language was an indication that rate increases could begin in March, which is when the next … Continued
COVID-19 cases, driven by the omicron variant, surged to record levels in January but peaked last week and started to decline. COVID-19, inflation, wintery weather and stock market volatility have weighed on consumer sentiment, but it too began to improve by the end of last week. New jobless claims increased again due to omicron. New … Continued
COVID-19 cases driven by the Omicron variant are at record levels that are more than triple the peak previously hit last January. The pace of growth is slowing, but the virus, inflation, the weather and stock market volatility have weighed on consumer sentiment. Inflation stood at its highest level in 40 years, but we may … Continued
Our team held the quarterly Manheim Used Vehicle Value Index call last week. We reviewed the used-vehicle market performance through the final quarter of 2021 and provided our forward-looking view of the market into 2022. A key topic in the discussion, of course, was the elephant in the room: Has the recent run-up of used-vehicle … Continued
The December job report was mixed as it similarly was in November. Again, job creation was disappointing with just 199,000 new jobs, but the unemployment rate fell to 3.9% with some growth in the labor force. Tight labor supply is limiting job growth. Wages saw a stronger month-to-month growth pace, but, year over year, the … Continued
New daily COVID-19 cases increased week over week as cases remain elevated about where they have been for the last two weeks. The impact of the omicron variant in the U.S. has been limited so far. Jobless claims continue to decline to more normal levels as the job market heals. Consumer sentiment has improved slightly … Continued
The tightening of U.S. monetary policy is accelerating after the Fed’s eighth and final meeting in 2021. As expected, the Fed announced that tapering would accelerate and bond buying would end by March. This sets the stage for rate increases to begin soon thereafter as the economic priorities shift from a focus on job recovery … Continued
