U.S. automakers have invested heavily in China, and, for years, in varying degrees by company, they enjoyed great growth. They taught their Chinese partners much about auto manufacturing and retailing. Now they are losing sales to Chinese automakers. Profits are declining. “Made in China 2025” is an ambitious Chinese program to globally dominate key technologies, … Continued
New home construction and new home sale have been a plus, but manufacturing is in decline against the backdrop of possibly prolonged trade drama with China. Housing positive:New home construction and new home sales are the primary positive trends so far this quarter, as lower mortgage rates are leading to the highest pace of new … Continued
Jonathan Smoke, Chief Economist at Cox Automotive, provides an update on the Key Trends that, earlier in the year, were predicted to have the greatest impact on the automotive industry in 2019. VIDEO HIGHLIGHTS The Economy – Economic growth has been revised slightly downward from 2.6% to 2.4% GDP due to a softer than expected year-end 2018, … Continued
New auto tariffs on Europe and Japan were postponed while tariffs on steel and aluminum from Canada and Mexico were lifted, eliminating some uncertainty but not all. Retail sales remain weak, pointing to a softer economy, but housing and interest rates, which fell, appear less of a drag. Still, auto loan rates are high. Tariffs: … Continued
The White House today in a statement confirmed that it will delay by up to six months any decision on Section 232 tariffs on autos and auto parts. This is exactly the route we expected, as the Trump Administration uses the threat of high tariffs as a preferred tool for leverage. How this journey ends is still … Continued
The May 2019 Cox Automotive Industry Update Report shares Cox Automotive’s multifaceted insight into the automotive marketplace to provide an overview of economic indicators, supply, demand, credit and other vital topics and trends affecting the industry. ECONOMIC INDICATORS Job creation in April was much stronger than expected as 263,000 jobs were created when analysts were … Continued
First-quarter economic growth blew away estimates and reversed a downward trend of the past couple of quarters, but beneath the headlines, consumer spending and business investment growth are weakening. Growth improves: First-quarter real GDP growth was much better than expected at 3.2%, but it wasn’t a result of consumer spending or business investment. A build-up … Continued
The April 2019 Cox Automotive Industry Update Report shares Cox Automotive’s multifaceted insight into the automotive marketplace to provide an overview of economic indicators, supply, demand, credit and other vital topics and trends affecting the industry. ECONOMIC INDICATORS The Employment Report for March eased fears regarding a dramatic slowdown in the economy as 196,000 jobs … Continued
Despite tame inflation, Fed patience with raising interest rates, wage gains and other positive economic signs, consumers are increasingly nervous, not about today, but about the future. Consumer sentiment dips: The initial reading on Consumer Sentiment from the University of Michigan fell in March, and the April initial reading was also below forecast. Consumers are … Continued
Fears of an economic slowdown eased a bit thanks to a strong job growth report and better-than-expected new vehicle sales. Job growth rebounds: Job creation rebounded in March from anemic growth in February, relieving fears of a more dramatic slowdown coming in consumer spending. Average monthly job creation so far in 2019 is 180,000 jobs, … Continued
