Much of economic analysis is not waiting for one massive macro number to show up and confirm something with you already knew is happening. It’s piecing together a patchwork of little micro numbers that start adding up together.
The economy dies by 1000 paper cuts, not some… t.co/3Sg20Ck2q5
— Uncle Milty’s Ghost (@his_eminence_j) July 2, 2024
Freight giant C.H. Robinson has eliminated over 50% of its US sales team, per Freight Waves
— MacroEdge (@MacroEdgeRes) July 2, 2024
People are delaying buying new cars, creating a deflationary 'spiral,' per BI.
— unusual_whales (@unusual_whales) July 2, 2024
- Car buyers are currently hesitating due to factors like high interest rates and price volatility.
- The average price paid for a car has decreased from its peak in 2022, but interest rates (averaging between 6.7% and 11.9%) continue to deter buyers.
- Economist Jonathan Smoke warns of a “deflationary spiral” in the auto industry. This occurs when consumers delay purchases, reducing demand and causing supply to pile up, ultimately pressuring prices downward
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