Americans' confidence in the economy hit a nine-year high of +14 in late January according to Gallup just as Donald Trump took office. It quickly retreated then spiked again at +16 in early March only to drop off once more. Yet all that optimism isn't turning into increased sales for big-ticket items like automobiles, nor is it translating into jobs for the auto industry. The New York Times writes:
On Tuesday, automakers reported the fourth straight monthly retreat in sales of new cars and light trucks, the longest stretch of declines since 2009, when the industry was embroiled in crisis and bankruptcies. The slump underscores the view of many that auto sales have peaked and are set to trend downward. [...]
Moreover, the top six automakers in the American market all reported declines from their April sales a year ago, and in every case the falloff exceeded analysts’ forecasts.
Adam Silverleib, vice president of a Massachusetts Honda dealership, told the Times that all that Trump-induced confidence “hasn’t translated into what’s happening in dealerships where we’re trying to sell cars.” As a result, several General Motors plants are expected to either lay off or cut shifts for some 4,000 workers in the coming months.
Overall, auto analysts are predicting only a mild decline in 2017 sales to 17.2 million down from a record-high 17.5 million in 2016. However, they say the decline could be worse in years to come. And cars aren't the only products that are failing to get a bump from Trump’s magic.
Now consumers seem to be holding off on spending more broadly — not just on cars, but on other big-ticket items, a primary factor in the economy’s tepid first-quarter performance.
from Daily Kos http://ift.tt/2p7pax9
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