November and Beyond

Economic Highlights:

• The US economy grew faster than expected in the first nine months of 2023.
• Consumer spending drove growth, but the savings rate declined to 3.4%.
• The manufacturing sector faces a short, shallow recession; the services economy is expected to slow.
• Inflation's decline stalled; wage inflation remains high.

Market Trends:

• Federal Reserve likely finished with rate tightening.
• Equity markets experienced a 10% correction; modest positive growth is expected.

Automotive Dealership Outlook:

• Dealerships are adapting to post-pandemic challenges, like supply disruptions.
• Shift to MSRP pricing as used car values drop; OEM incentives return.
• Customer power increases with higher inventory and lower prices.
• Digital retailing evolves; dealers focus on efficient, effective sales processes.
• EV market grows, driven by policy initiatives and investments.
• Importance of first-party data in marketing as third-party cookies phase out.

The U.S. market shows resilience with growth in 2023, though challenges like inflation persist. Automotive dealerships face a transforming landscape with new opportunities and hurdles, including pricing strategies, customer dynamics, digitalization, and the burgeoning EV sector.