Segment Results for Seasonally Adjusted Prices Year-Over-Year Mixed In First Half of August

• Compared to the industry’s year-over-year increase of 1.2%, the luxury segment performed best, rising by 1.8%.
• Rising less than the industry, SUVs were higher by 0.9%.
• Trucks declined 0.6%.
• Mid-size cars fell by 2.0%,
• Compact car segment declined the most again, -3.8% against last year.

Against the full month of July, results by segment varied. The overall industry fell by 0.4% against the preceding month, though compact and mid-size cars were higher over the period, rising by 0.9% and 0.7%, respectively. The SUV segment was down 0.3% against July, with trucks falling by 0.7%, and luxury falling the most, down 1.4% since the end of last month.

• Electric vehicles (EVs) are showing the strongest year-over-year gains currently, as demand rises for these units with the impending end of tax credits next month. EVs showed an increase of 4.2% in early August, while the non-EV segment increased by just 0.9% over the period. Against July values, EVs showed larger gains than the industry, rising by 0.5% in the first half of August, while non-EVs were higher by 0.3% against July in the first half of the month.

Consumer Sentiment Lower in First Half of August

• The initial reading in August of the sentiment index from the University of Michigan showed a decline of 5.0% from July and was lower than analysts’ expectations. With the decline, the index was down 13.7% year over year.
• Views of both current conditions and expectations declined, but current conditions declined the most.
• Expectations for inflation in one year increased to 4.9% from 4.5%, and expectations for inflation in five years increased to 3.9% from 3.4%.
• Consumers’ views of buying conditions for vehicles decreased to the lowest level since May and were worse than one year ago, as both views of interest rates and views of car prices deteriorated.
• The daily index of consumer sentiment from Morning Consult shows a downward trend with data through Aug. 15. After increasing 1.3% throughout July, the index has reversed course and is down 1.3% so far in August.
• Views of both current conditions and future expectations declined in the first half of August, but views of future expectations declined the most.
• According to AAA, the average price of unleaded gasoline has decreased 0.3% for the month as of Aug. 15 to $3.14 per gallon, which was down 8% year over year but up 2.6% year to date.