U.S. dealer sentiment improved modestly in the second quarter of 2026, but expectations for the months ahead deteriorated as economic concerns weighed on confidence, according to the latest Cox Automotive Dealer Sentiment Index.
The survey, released May 26, found the current market sentiment index rose to 43 from 41 in the first quarter, marking a second consecutive quarterly increase. Despite the gain, the index remained below 50, indicating that most dealers still viewed market conditions as weak. Franchised dealers reported a current market score of 53, while independent dealers remained below the positive threshold at 40.
“The gains this quarter are in line with seasonal expectations we’ve seen in the past,” said Mark Strand, Deputy Chief Economist at Cox Automotive. “Sales in March and April were healthy and helped boost current sentiment, but rising inflation, elevated fuel costs and geopolitical uncertainty are weighing on dealer confidence for the months ahead.”
The outlook for the next three months fell sharply to 47 from 56 in the previous quarter, reflecting growing concerns about inflation, economic conditions and softening consumer demand. Customer traffic improved but remained weak overall, while dealer profitability rose modestly from the first quarter.
New-vehicle sales sentiment increased to 53, supported by stronger spring sales. Used-vehicle sentiment remained unchanged at 44 and continued to signal weak conditions overall, although franchised dealers reported stronger used-vehicle performance than independent dealers.
Dealers identified the economy, market conditions and the political climate as the top factors holding back business activity. More than half of respondents cited the economy as their primary concern, followed by market conditions and political uncertainty.
