Market Cycle

📈 Ups:

• Consumer Spending: Spending on retail saw a massive 4.8% jump (up from 0.5% in Q2).
• New Home Sales: New home sales are showing a robust 12.3% increase from August, and 33.9% YOY.
• Travel Budget: Wallets are filling back up with a 6% YOY drop in gas prices so far this month (to an average $3.52/gallon as of October 26th).
• Real GDP: Increased to 4.9% YOY in Q3 (up from 2.1% in Q2).

📉 Downs:

• Consumer Savings: Declined to 3.4% (the lowest level so far this year).
• Existing Home Sales: Experienced a dip in September, indicating a consumer penchant for newness.
• Consumer Moods: The University of Michigan reported a 6.0% dip in consumer sentiment this month (though the tide has begun to turn as gas prices continue to drop).
• EV Sales: Are facing some speed bumps, with slowing sales and inventories beginning to pile up.
• Wholesale Prices: Overall, the wholesale market is depreciating across all segments, but the rate of decline is below what is typical for the time of year.

🔑 Takeaways to Consider:

💭 Consumers Gon’ Consume — People are willing to open their wallets right now…if the price is right. Capitalize on it by offering promotional deals, special financing options, or loyalty programs to attract and retain customers.

💭 Variety is the Spice of Life — Vehicle types are showing varied performance. Keep a diverse range available and adjust inventory based on your local market demands.

💭 EV Worries — A dip in EV demand has caused a revaluation of the electric car market. Stay extra cautious with those investments.