Despite ongoing inflation and pressure on household budgets, the U.S. automotive market continues to show resilience, according to Cox Automotive’s latest Auto Market Weekly Summary.
The report said U.S. new-vehicle transaction trends remained solid through the middle of June, while used-vehicle values continued to track at normal seasonal levels. Cox Automotive said pent-up demand built over the past several years continues to support vehicle sales, even as overall consumer spending remains subdued.
The broader economic backdrop remains mixed. The final estimate for first-quarter U.S. gross domestic product growth was revised upward to 2.1 per cent, while inflation remained elevated in May. Personal income and spending both increased 0.7 per cent during the month, but household spending continued to outpace income growth on an annual basis, reflecting the cumulative impact of inflation and higher living costs.
Cox Automotive noted that lower oil prices in recent weeks could help ease inflationary pressures in future reports, although it cautioned that low global oil inventories may limit how far prices fall in the months ahead.
The report also found new home sales and residential construction slowed in May, pointing to continued softness in the U.S. housing market.
Although the analysis focuses on the United States, Cox Automotive said vehicle demand has remained stronger than broader consumer spending trends might suggest. The company attributed that resilience to consumers who delayed vehicle purchases during recent years and are now returning to the market, helping offset affordability pressures.
While based on U.S. data, the report highlights market trends Canadian dealers monitor closely. Stable used-vehicle values and continued consumer demand south of the border can influence broader North American market conditions, even as affordability remains a challenge for buyers.
