The latest employment report represented strong and improving labor market conditions, which was unexpected. Job growth in April accelerated, the unemployment rate declined, and wage growth accelerated. All major industry sectors added jobs in April, but services represented most of the gains. The labor market remains strong despite the Fed tightening monetary conditions and credit … Continued
Sales into large fleets, not including sales into dealer and manufacturer fleets, increased 38.6% year over year in April to 214,362 units, according to an early estimate from Cox Automotive. Combined sales into large rental, commercial, and government fleets have seen nine consecutive months of double-digit, year-over-year increases. Sales into rental fleets were up 64.4% … Continued
Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) decreased 3.0% in April from March. The Manheim Used Vehicle Value Index (MUVVI) dropped to 230.8, down 4.4% from a year ago. “While values increased 8.6% through the first quarter from December, the market has reversed course in April, with our monthly figures showing … Continued
As our team has noted consistently this year, the economy’s fundamental issues revolve around inflation and the high-and-increasing interest rates being applied to stop inflation. Yesterday, the Fed moved rates higher again for the 10th time in a row. If there is a silver lining for consumers here, it is that the Fed is likely … Continued
The Fed raised a quarter point today, which was widely expected. What was more important was the lack of language suggesting additional firming was anticipated, which is the Fed’s way of saying further increases are less likely than not. The increase was the tenth in a row. The Fed has raised the Fed Funds Rate … Continued
Every year many automakers shut down their assembly plants to retool and prepare for the new model year or product changeover. Factory employees love shutdowns because they typically cash in on some overtime hours leading up to the changeover, and they get to enjoy a little vacation time. When COVID-19 hit in the spring of … Continued
Stellantis is struggling in the U.S., one of its most important markets, with bloated inventories and underperforming sales. How that impacts the overall company will be revealed—in part—on Wednesday, May 3, when the automaker reports its shipments and revenues. The automaker will not post full financial results as it only does so every six months. … Continued
First-quarter real GDP growth reflected a slowing economy, but underneath the headline deceleration was an improvement in consumer spending. Consumer incomes and spending were stable in March. The personal savings rate increased. Key measures of inflation showed downward progress, but they remain elevated. New home sales increased in March, while pending home sales declined. Total home … Continued
Driven partly by strength from its electric vehicles, Ford Motor Co. could deliver better-than-expected financial results for the first quarter of 2023 when it reports them on Tuesday, May 2. Wall Street analysts expect a year-over-year decline in earnings on higher revenues. The consensus is that earnings per share will drop by 5%, but revenues … Continued
Don’t Stop the Music, An Ode to the Fed I’ve assembled this playlist of great tracks reaching all the way back to the 1950s that help explain the circumstances and dynamics we face as the Fed tempts fate by raising rates to vanquish inflation that is already coming down – while banks are failing, and … Continued
