New-vehicle prices fell in January with weaker retail demand. Incentives relative to price reached the highest level since July 2021. Discounting relative to the manufacturer’s suggested retail price (MSRP) has decreased slightly to nearly half of what it was in 2019 after being nonexistent a year ago. Used-vehicle prices were flat again in January, as … 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 January reaccelerated and was much stronger than expected, plus prior months were revised up. The three-month average for job creation increased to the highest level in nine months, casting doubt on the thesis that job growth is slowing. The unemployment rate and labor force participation were steady as wage inflation accelerated.  The … Continued

As expected, the Fed left interest rates and overall monetary policy unchanged yesterday. We have now had four straight meetings with no change in rate policy. The biggest changes from the Fed are in the language that describes their bias, which has shifted from leaning heavily towards tightening to starting to consider loosening. Rate cuts? … Continued

The economic data released last week affirmed a strong ending to 2023. Real GDP growth was 3.3% for the fourth quarter, which represented a slowing from the third quarter but was still very strong. All components of GDP were positive contributors, and while consumer spending decelerated, it remained at a healthy level for growth. Consumer … 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 grew more than expected in December, posting their strongest performance since January 2023. New construction trends were mixed in December, but the underlying trend suggests stability in aggregate with more strength in single-family homes. Existing home sales declined in December to the lowest level since August 2010, with the lowest inventory since March … 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

Used-vehicle prices declined again in December while used-vehicle retail sales improved. Lower prices create demand for affordability-challenged consumers. Inflation, according to the Consumer Price Index, reaccelerated modestly in December. Headline inflation increased to 3.4% from 3.1% in November.  Consumer credit expanded substantially in November as credit card usage jumped. However, Access to auto credit declined in … Continued