Economic concerns dimmed franchised dealers' view of the third-quarter market and their expectations for the future, Cox Automotive's top economist said Wednesday.
Franchised dealers polled this summer for Cox's third-quarter Dealer Sentiment Index rated their markets as still favorable but worse than 90 days earlier or at the same time in 2021. And dealer respondents anticipated a further decline in conditions during the final few months of the year.
"The economy is the source of worry and I think ... why the outlook is dimmer," Cox Automotive Chief Economist Jonathan Smoke told Automotive News. "Across the board, costs are rising, the new-vehicle market remains tight, and sales remarkably are holding up so far. It's more about the uncertainty about the future and the economy that I think is framing the lower outlook."