Economic Outlook: Source
Consumer sentiment in the U.S. has improved much more than anticipated in January, according to preliminary data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index surged to 78.8 in January after jumping to 69.7 in December.
The University of Michigan’s report also showed continued decreases in both year-ahead and long-run inflation expectations. Year-ahead inflation expectations slipped to 2.9 percent in January after plunging to 3.1 percent in December, hitting the lowest level since December 2020.
Wholesales to Retail Trending: Source
Wholesale depreciation was the same as the previous week, with 3-year-old models falling 0.3%. Sale prices dropped lower compared to MMR and lane efficiency declined as well. Used and new retail sales were lower than in most previous years, pushing up days’ supply.
Inventory is starting to move back towards appreciation in certain sub-segments. We expect to see that continue in certain price bands and segments in the coming weeks.
Retail Sales Market Outlook: Source
According to Cox Automotive estimates based on vehicle registration data, total used-vehicle sales in December finished near 2.6 million units, up 2.1%, around 54,000 units, from December 2022. Used retail sales are estimated to have finished December near 1.4 million, up 2.6% from last year’s volume, or just over 35,000 units.
Service Outlook: Source
Service activity at franchised dealerships in the U.S. decreased in December, following a rise in November. The Repair Order Volume Index fell compared to December 2022, while the Repair Order Revenue Index remained higher year over year.
In December, the Repair Order Volume Index tied its lowest point in six years with a reading of 82.1. This represents a 5.1% decrease from November and a 3.2% decrease from December last year.
The Repair Order Revenue Index for December is at 133.2, reflecting a 1.5% decrease from the revised reading in November. However, this index shows a 3.5% increase year over year and a significant 36.4% increase from December 2019, with increases driven in large part by inflation.