The Cox Automotive Dealer Sentiment Index for the first quarter of 2021 was recently published, showcasing how dealers feel about the current state of the automotive market. CBT News host Jim Fitzpatrick is joined by Jonathan Smoke, chief economist for Cox Automotive. Smoke joins the show to break down key findings from the index and provide some clarity on the future of the market.
Smoke begins the conversation by providing a refresher on the purpose of the index. He says that the index is used to measure how dealers feel about the state of the market and where they think it is headed. In economist terms, the report is called a “diffusion index,” meaning the numbers reported for each question tell if it’s either good or bad. For most questions, if the number is above 50 the outlook is good, and if it’s below 50 the outlook is bad.