As widely expected, the Fed raised the target for the Federal Funds Rate by three-quarters of a percentage point today as it remains steadfast in its goal to rein in inflation. Combined with the increase made in June, the Fed has now moved the target rate more in two months than at any point since … Continued
The job market is starting to show signs of cooling as new initial claims have risen for seven straight weeks and are now at a level higher than they were before the pandemic began. However, continuing claims continue to remain below pre-pandemic levels. The housing market has suffered the most from the dramatic increase in … Continued
Earlier this month, during our quarterly Manheim Used Vehicle Value Index (MUVVI) conference call, there were a significant number of questions related to the health of the U.S. economy, inflation, and the impact used-vehicle prices are having on inflation. These are all important topics that are worth addressing. First, as I noted during the call, … 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.
Inflation accelerated in June, according to the Consumer Price Index (CPI). The year-over-year inflation rate hit 9.1%, the highest since November 1981. Key categories that consume a sizable portion of consumer budgets, such as food, rent and gasoline, saw significant gains. Vehicle prices also added to June’s inflation reading, although Cox Automotive data covering used … Continued
The June employment report showed a slowing in job growth, but it exceeded expectations at 372,000 jobs created, which was a historically healthy number of jobs created. The unemployment rate was also unchanged at 3.6%. Labor force participation declined slightly, and growth in average hourly earnings year over year slowed. The underemployment rate fell to … 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.
Real GDP declined in the first quarter slightly worse than previously estimated, as downward revisions to spending reduced growth further. Even so, consumer spending did grow over Q4 2021. Consumer spending slowed in May. With inflation factored in, real spending declined. Income growth was stable, and the savings rate increased. Pending home sales surprised to … Continued
A replay of the Cox Automotive 2022 Mid-Year Review webcast held on Tuesday, June 28, is available below. Cox Automotive Chief Economist Jonathan Smoke and our Industry Insights team provided a deep dive into the economy and auto industry – the new, used and wholesale vehicle markets for the first half. The Cox Automotive June U.S. auto sales forecast was … Continued
As the first half of 2022 comes to a close, our team is once again reviewing the market predictions we offered back in January and providing an assessment of how well we did. Of course, we don’t have full-year results to judge every factor completely, but for the most part, our Ten Predictions for 2022 … Continued
