Consumer sentiment dipped in June but is showing signs of recovery in early July, reflecting cautious optimism. Used vehicle sales and service activity are gaining momentum, while new vehicle sales remain steady.
Year-over-year growth in spending accelerated in April, then moderated in May. June data shows a leveling off, suggesting consumers are adjusting to inflation and interest rate dynamics. The Index of Consumer Sentiment rose 7.1% in May, fell 3.6% in June.
New-vehicle supply has increased over the past month, while used supply remains steady. Retail prices for 2022 model year vehicles declined 0.2%, and wholesale prices fell 0.3%—a normal seasonal pattern.
