Economic news

Election uncertainty may impact U.S. auto industry, report says

2024.06.25 10:42

(Reuters) – Uncertainty looms over the U.S. auto industry, fueled by expectations that the presidential elections in November will reshape the economy, affect interest rates or influence inflation levels, a report from Cox Automotive showed on Tuesday.

Cox forecast that new-vehicles sales volume in the first half of 2024 will rise by 2.9% year-over-year and held its full-year forecast steady at 15.7 million.

WHY IT’S IMPORTANT

Consumers in the U.S. have been reluctant to make big-ticket purchases like vehicles due to inflationary pressures. Shoppers may continue to hold back due to economic uncertainty stemming from the presidential election, the report says.

KEY QUOTES

“If shoppers believe interest rates will be lower in the future, or that the economy will be improving – or worsening – post-election, they are more likely to stay on the sidelines, waiting for the dust to settle,” said Vanessa Ton, senior manager at Cox Automotive.

“There is a view from consumers now that if they wait, they’re going to get a better price,” Charlie Chesbrough, senior economist for Cox Automotive, said in a media briefing on Tuesday.

BY THE NUMBERSBoth shoppers and dealers believe that inflation is the top concern, with 74% of consumers and 81% of dealers believing the next election will influence it.

However, auto dealers are divided on the impact of the election on vehicle sales, with about 38% expecting sales to worsen, and 31% each who expect sales will either improve or remain the same.

© Reuters. FILE PHOTO: Vehicles for sale are seen at Serramonte Ford in Colma, California, U.S., October 3, 2017. REUTERS/Stephen Lam/File Photo

WHAT’S NEXT

About 41% consumers believe that vehicle prices will rise due to the election, while 33% believe it will have no impact on prices, according to the report.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 88,939.83 3.65%
ethereum
Ethereum (ETH) $ 3,139.58 4.48%
tether
Tether (USDT) $ 1.00 0.07%
solana
Solana (SOL) $ 215.20 1.25%
bnb
BNB (BNB) $ 634.24 0.38%
dogecoin
Dogecoin (DOGE) $ 0.39495 4.20%
xrp
XRP (XRP) $ 0.747643 3.93%
usd-coin
USDC (USDC) $ 0.999814 0.14%
staked-ether
Lido Staked Ether (STETH) $ 3,134.62 4.41%
cardano
Cardano (ADA) $ 0.557281 5.31%
tron
TRON (TRX) $ 0.178691 0.75%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 4.76%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,715.90 4.81%
the-open-network
Toncoin (TON) $ 5.31 0.69%
avalanche-2
Avalanche (AVAX) $ 32.44 5.48%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 88,731.77 3.58%
sui
Sui (SUI) $ 3.39 1.61%
pepe
Pepe (PEPE) $ 0.000023 19.66%
weth
WETH (WETH) $ 3,139.98 4.46%
bitcoin-cash
Bitcoin Cash (BCH) $ 426.29 3.15%
chainlink
Chainlink (LINK) $ 13.32 5.31%
polkadot
Polkadot (DOT) $ 4.90 7.45%
leo-token
LEO Token (LEO) $ 7.44 2.20%
near
NEAR Protocol (NEAR) $ 5.43 0.58%
aptos
Aptos (APT) $ 11.54 6.04%
litecoin
Litecoin (LTC) $ 81.71 6.07%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,305.58 4.32%
usds
USDS (USDS) $ 0.999848 0.67%
uniswap
Uniswap (UNI) $ 8.39 5.91%
crypto-com-chain
Cronos (CRO) $ 0.158494 12.04%
dogwifcoin
dogwifhat (WIF) $ 4.06 11.84%
internet-computer
Internet Computer (ICP) $ 8.20 6.47%
stellar
Stellar (XLM) $ 0.127579 2.53%
bittensor
Bittensor (TAO) $ 511.39 8.03%
kaspa
Kaspa (KAS) $ 0.14606 11.43%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.30 1.89%
ethereum-classic
Ethereum Classic (ETC) $ 21.91 3.48%
dai
Dai (DAI) $ 1.00 0.24%
whitebit
WhiteBIT Coin (WBT) $ 22.18 1.25%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.04%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.365032 7.24%
blockstack
Stacks (STX) $ 1.87 6.58%
render-token
Render (RENDER) $ 7.10 0.98%
monero
Monero (XMR) $ 145.90 3.03%
bonk
Bonk (BONK) $ 0.000038 0.77%
okb
OKB (OKB) $ 43.77 3.73%
aave
Aave (AAVE) $ 165.33 8.38%
mantle
Mantle (MNT) $ 0.723013 1.16%
injective-protocol
Injective (INJ) $ 24.51 2.06%
arbitrum
Arbitrum (ARB) $ 0.598313 5.55%