Consumer Outlook Dims
The year starts with declined expectations for economic conditions and plans to make big purchases. Used cars, though, are among the top big-ticket categories under consideration.

Overall vehicle-buying plans were flat for the month, while six-month moving average outlook on new-car purchases fell and used-car purchase plans increased.
Pexels/Kampus Production
Consumer confidence fell in January to a low not seen for nearly 15 years, as plans to buy cars and make other major purchases continued to decline.
The Conference Board’s Consumer Confidence Index fell about 10 points to 84.5.
The nonprofit business membership and research group’s Present Situation Index gauging consumers’ perspective on current business and labor market conditions fell at about the same rate to 113.7.
Meanwhile, its Expectations Index measuring six-month outlook on income, business and labor market conditions also fell about 10 points to 65, which the group considers “well below” its threshold of 80 that typically cues a recession.
In fact, the share of consumers expecting that a recession is very likely in the next 12 months rose, along with the modest percentage who believe the U.S. economy is already in a recession. Those readings, though, aren’t factored into the confidence index.
“Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened,” said the board’s chief economist, Dana M. Peterson.
“All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths.”
Consumer confidence fell for all age groups, income brackets and political affiliations, especially independents in the latter category, according to the board’s survey.
Affordability concerns, along with anxiety about politics, healthcare expenses and war weighed on many consumers’ minds in regard to economic effects, the board found in write-in survey responses.
Fewer consumers said they plan to buy high-cost items in the next six months, and more indicated they don’t plan big purchases, while the maybes also rose. Overall vehicle-buying plans were flat for the month, while six-month moving average outlook on new-car purchases declined. Used-car purchase plans, meanwhile, increased.
Expectations for stock prices a year from now fell in January.
A bright spot in the survey findings came in consumers’ current family financial situation perspective, which edged up slightly. Looking to the future, though, outlook eroded.
Originally posted on F&I and Showroom
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