💼 Labor and Wages — New weekly jobless claims fell to their lowest point in more than a year and a half. A decline in job openings indicates a cooling in the labor market, which should lead to slower wage growth.
🛋️ Homes and Goods — Increases in rent for new leases have slowed and mostly stabilized after their 2022 spike. In December, the consumer price index rose by 3.4% YOY largely due to higher costs of services, car insurance, and used car prices.
🐡 Inflation and Federal Reserve Policy — Inflation remains above the Fed's 2% target, but the easing of Fed policy is likely later in the year.
💪 Market Trends and Opportunities — Stock markets are showing resilience with the S&P 500 and Dow Jones reaching new highs. Opportunities are showing in diversified investments, especially in lagging equity segments and U.S. small-and mid-cap companies.
🌊 A Surge of New Biz: In December, 457K business applications were filed in the US (about 45% more than at the same time in 2019).
Although applications in transportation and warehousing (including gig, ridesharing, and delivery services) initially doubled, they have been declining steadily.
🥰 Improved Satisfaction in Vehicle Shopping — A recent Cox Automotive study shows increased satisfaction in car buying, credited to better inventory, discounting, and an effective omnichannel approach.
🤓 Shopping Habits: Buyers typically checked out two vehicles and visited two dealerships before making a selection, with nearly 80% using third-party websites like Autotrader and Kelley Blue Book to help inform their decision.
⚔️ Challenges in Auto Credit and Loans — The auto loan industry has experienced a noticeable uptick in interest rates this month, resulting in higher monthly payments for consumers and downgrading their purchasing power.
This tightening has coincided with an increase in auto loan delinquencies and defaults, speaking to broader economic issues plaguing consumers like persistent inflation and ballooning debt.
📉 Declining Market Prices — In the first half of January, Manheim Market Report prices fell by 0.7%, exceeding the usual 0.1% drop for this period, reflecting weaker-than-normal buying demand.
🤑 Segment-Specific Price Trends — In contrast to the overall 1.0% industry decline, luxury, SUVs, and compact cars saw greater price reductions, while midsize cars, pickups, and vans showed relatively smaller drops.
