The US economy ended 2023 stronger than many thought it would. In the last quarter, the economy grew by 3.3% YOY. If it weren't for a big dip in car production because of the Auto Workers' strike, the economy could have grown by more than 4%.
The Federal Reserve kept interest rates steady for the fourth consecutive session, subtly signaling a more accommodating stance that could pave the way for future rate cuts and more affordable loan terms.
Spending growth is slowing while production increases, suggesting that inflation is dropping.
This year, major inflation measurements in the Personal Consumption Expenditures Price Index have seen significant slowdowns. The US economy outperformed expectations in 2023, surpassing predictions with a 3.1% GDP growth, unemployment at 3.7%, and core inflation at 2.7%.
With inflation easing, shoppers are beginning to feel more comfortable spending (though remaining thrifty is still a top priority).
The wholesale market is slowing down in how quickly car values are dropping, with a small decrease of only 0.33% this week. This is a bit less than the usual drop of 0.39% we saw before the pandemic for the same time period.
Cars that are 8 to 16 years old are starting to show a little bit of improvement, with five categories of these older cars actually going up in value last week.