Car Inventory Climbs as Vehicle Sales Slip

By Staff
Wednesday, July 3, 2024 1:00 PM Car inventory has seen a slight uptick this summer as companies release new models. Demand for vehicles, however, remains stagnant, according to the latest State of the Dealer report from ZeroSum, an industry leader in software, marketing and data science.

The automotive retail agency said its latest findings show new vehicle inventory has reached nearly 3 million on a month-to-month basis, while the market for used and certified vehicles remains unchanged.

Market prices for new vehicles continue to rebound from a winter decline averaging $50,571. This is a $1,000 increase in manufacturer’s suggested retail price (MSRP) in the past year, according to ZeroSum.

The company added that the marketed prices for used vehicles continue to be “in the tight span” since early 2024, sitting well below the $30,000 mark that was seen a year ago.

Marketed pricing for certified vehicles rose for the fourth straight month, coinciding with a recent rebound in new vehicle pricing. ZeroSum noted that the underlying efficiency-oriented dynamics of the market have plateaued, noting car turn rates are settling in the high 30s and days-to-move in the low 60s.

Home Sales Shrink in May, National Association of Realtors Report Finds

By Staff
Tuesday, July 2, 2024 1:00 PM Home sales fell in May according to a new report from the National Association of Realtors (NAR). New data revealed that home sales fell in all four major U.S. regions. The South saw sales drop month over month, while the Northeast, Midwest and West remained relatively unchanged. Meanwhile, year-over-year sales increased in the Midwest, while falling in the Northeast, South and West.

Total existing home sales, including single-family homes, town homes, condominiums and co-ops, fell 0.7 percent between April and May to a seasonally adjusted annual rate of 4.11 million home sales. Year-over-year sales fell 2.8 percent, down from 4.23 million in 2023. Regionally, existing home sales in the Northeast in May remained unchanged from April at 480,000, down 4 percent compared with May 2023. The median price in the Northeast was $479,200, up 9.2 percent from the prior year.

In the Midwest, existing home sales also remained unchanged an annual rate of 1 million in May, up 1 percent from one year ago. The median price in the Midwest was $317,100, up 6.4 percent compared with May 2023.

In May, existing home sales in the South fell 1.6 percent from April to an annual rate of 1.87 million, down 5.1 percent from the previous year. The median price in the South was $374,300, up 3.6 percent from last year.

Gross Domestic Product Climbs During the First Quarter of 2024, Bureau of Economic Analysis Reports

By Staff
Monday, July 1, 2024 1:16 PM The U.S. real gross domestic product (GDP) slid in the first quarter of 2024, according to a new report from the Bureau of Economic Analysis (BEA). New data shows the GDP increased by a real annual rate of 1.3 percent in the first quarter of 2024, however, this is a deceleration from the fourth quarter of 2023 when the GDP increased by 3.4 percent. 

Experts believe the increase reflects a rise in consumer spending, residential fixed investment, non-residential fixed investment, and state and local government spending, partly offset by a decrease in private inventory investment.  

The BEA noted that compared to the fourth quarter, the deceleration in real GDP primarily reflected decelerations in consumer spending, exports, and state and local government spending, and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment, the bureau noted. Imports also accelerated, the BEA said.

Disposable income also rose, climbing to $20 billion, however, this was down from original predictions. Personal savings also fell to $777 billion. Profits for financial corporations increased by $65 billion in the first quarter, however, this was also down from original BEA predictions, according to the report.  

The BEA said a downward revision to imports and upward revisions to non-residential fixed investment, state and local government spending, exports, federal government spending, private inventory investment, and residential fixed investment, were partly offset by a downward revision to consumer spending, all of which points to a slowdown in economic recovery into 2024.

Gas Prices Spike Ahead of July 4 Travel Period, AAA Report Finds

By Staff
Friday, June 28, 2024 3:03 PM A new American Automobile Association (AAA) report shows gas prices spiked ahead of long weekend travel and are averaging $3.50 per gallon. This uptick follows an increase in global oil prices which reached more than $80 per barrel at the end of June. 

Beginning July 1, several states will adjust fuel taxes and fees, with Indiana leading the pack with an increase to 35 cents per gallon. Meanwhile, Virginia will increase taxes on gasoline, gasohol and alternative fuels to 30.8 cents per gallon. 

Michigan will keep its tax rate the same at 18.8 cents per gallon and will reduce taxes on clear diesel fuel and kerosene to 20 cents per gallon. 

AAA noted recent data from the Energy Information Administration shows a drop in demand from 9.3 million barrels a day to 8.96 billion barrels a day at the end of June. 

As of the end of June, the most expensive gas markets were California where prices have reached an average of $4.80 per gallon, followed by Hawaii at $4.71 per gallon and Washington at $4.21 per gallon. 

The least expensive gas in the nation can be found in Mississippi which has fallen to $2.91 per gallon, followed by Louisiana and Arkansas which both sit at $3.01 per gallon.

Career Development and Health Care Benefits Are Top Priorities for Job Seekers, Kellanova Survey Finds

By Staff
Thursday, June 27, 2024 2:35 PM Job seekers are looking for more than just a paycheck when it comes to choosing a career. A new survey from Kellanova, formerly known as Kellogg Company, finds that job seekers are looking for employment in jobs that have a positive impact on their careers. More than 95 percent of respondents to the survey, titled "What About Me? Attracting Top Talent in a Shifting Job Market,” said they were looking for a workplace that demonstrates how they can make an impact, and in return, they want to be rewarded for their accomplishments. 

Meanwhile, 63 percent of respondents said they were looking for workplace flexibility with the opportunity for career development. Nearly all of the respondents said they want the opportunity to unleash their potential, while 92 percent of candidates expect their employees to make their well-being a priority. 

Health care support was a significant concern for employees, with 62 percent of job candidates in both the U.S. and Canada saying health care benefits and financial incentives will most likely increase interest in a company. 

Company legacy and brands were also deciding factors for potential candidates, with 40 percent responding they consider history of philanthropy and commitment to sustainability as differentiators. This was closely followed by long-standing relationships with customers and consumers at 39 percent.

More Older Adults Are Living in Poverty, U.S. Census Bureau Reports

By Staff
Wednesday, June 26, 2024 3:15 PM A new report from the U.S. Census Bureau finds that a significant number of older adults living in poverty are not receiving social security. According to the report, 28 percent of older adults relied on social security as their sole source of income in 2021. For many older adults, however, there is no social security option due to insufficient work or no work history.

Seventy percent of older adults in poverty lived in households that received Social Security, compared to about 91 percent of those in households that are not in poverty.

This has led to an increased risk of living in poverty and vulnerable living conditions—new data shows that 63 percent of older adults in poverty lived alone, compared with 26 percent of those not experiencing poverty. 

Approximately 8 percent of people over age 65 lived in poverty in 2021. Women were most likely to be living in poverty at a rate of 65 percent, compared with 54 percent of those in the same age category not living in poverty. 

Marital status may be exacerbating poverty for some Americans. According to the report, 24 percent of the people living in poverty were married, compared with 59 percent of those not living in poverty. Experts believe the higher rate of poverty among single people may be due to fewer financial programs, tax benefits, and non-tax benefits available to unmarried individuals. Older adults were also less likely to receive retirement and property income. 

Experts at the Census Bureau believe that creating a safety net for people with inconsistent income is important, adding that Social Security is no longer enough to meet the needs of those in poverty. 

Low Salaries and Work Stress Are Pushing Nurses Out of Health Care Jobs

By Staff
Tuesday, June 25, 2024 2:16 PM A new survey from Medical Solutions, which connects nurses and allied health clinicians with hospitals and health care systems, finds that more nurses are considering a career change. The Voices of Care survey examines the needs of medical professionals within the nursing industry. 

Survey results show that more nurses are considering leaving the profession to pursue jobs that are offering better salaries and benefits. Meanwhile, a significant number of nurses are also leaving the profession due to mental health issues and stress. 

More than 40 percent of respondents said job-related health issues were among the top three reasons for choosing to leave the profession. Meanwhile, more than 27 percent said the industry has unmanageable workloads, prompting nurses to consider quitting. Furthermore, 27 percent of respondents said they feel undervalued and unsupported by their employment organization.

Just over 7,000 registered nurses were surveyed including traveling nurses, staff nurses and PRN (as needed) nurses. The goal of the survey is to provide health care facilities with insights into the attitudes and behaviors of nurses under current working conditions. 

Salary remains one of the main priorities of nurses, with 97 percent of respondents saying this is why they selected a position as a traveling nurse. Additionally, 19 percent of permanent nurses and 14 percent of per diem nurses reported they would like to transition to a role as a traveling nurse.

Native Americans’ Access to Broadband Trails Behind the National Average, U.S. Census Bureau Reports

By Staff
Monday, June 24, 2024 1:57 PM American Indians and Alaskan natives have the lowest rates of high-speed internet access in the United States, according to a new report from the U.S. Census Bureau. Titled Computer and Internet Use in the United States: 2021, the report released in June finds that the “digital divide between tribal and non-tribal households” fell from 10 percent to 6 percent between 2016 and 2021.

Access to the internet, however, remains lower among American Indian and Alaskan Native households on tribal lands. New data from the American Community Survey conducted by the U.S. Census Bureau, shows that 90 percent of non-Native American households had broadband access compared with 84 percent of American Indian and Alaska Native thousands and 71 percent of American Indian and Alaska Native households on tribal land. 

Some areas in the U.S. are seeing improvement in broadband access. Data from the U.S. Census Bureau finds that tribal residents in six states, including Delaware, Florida, Georgia, Hawaii, Washington and Wisconsin, have broadband rates at or above the national average of 90 percent in 2021.

The U.S. Census Bureau noted one particular instance where the Navajo Reservation and Off-Reservation Trust Land, one of the largest tribal American Indian and Alaska Native populations, has a broadband subscription rate of only 33 percent.

Meanwhile, tribal residents in Arizona, Connecticut and New Mexico had among the nation’s lowest rates at less than 70 percent in Arizona and New Mexico, and 60 percent in Connecticut.

Independence Day Travel Is Expected to Climb in 2024, AAA Predicts

By Staff
Friday, June 21, 2024 3:02 PM Americans are ready to hit the road over the Independence Day holiday, according to a new report from the Automobile Association of America (AAA). The association is projecting that nearly 71 million travelers will travel 50 miles or more from home between Saturday, June 29 through Sunday, July 7.

The AAA predicts a 5 percent increase in travelers compared with 2023, and an 8 percent increase over pre-pandemic travel figures. 

More than 60 million people will travel by car, according to AAA, nearly 3 million more travelers than in 2023 and approximately 5 million more than in 2019. 

Lower gas prices are expected to help spur travelers to go farther, with the national average price of gas coming in at $3.53 per gallon. Prices are predicted to drop further as the holiday approaches and remain stable until Labor Day. 

Air travel is also expected to reach new levels, with an estimated 5.74 million people expected to fly during the Independence Day holiday period. This is an increase of 7 percent compared with the same time period 2023, and is 12 percent more than in 2019.

INRIX, a provider of transportation data and insights, warns travelers to avoid traveling between 2:00 and 7:00 p.m. The organization recommends traveling during the morning hours and later afternoon to avoid rush hour traffic.

Positive Job Numbers May Be on the Horizon, The Conference Board Reports

By Staff
Thursday, June 20, 2024 2:18 PM The Conference Board Employment Trends Index (ETI) rose slightly in May, a possible sign of improved economic recovery. The ETI, a leading composite index for employment, rose from 110.48 in April to 111.4 in May. In the past, when the ETI increased, employment opportunities would follow into the second quarter, according to The Conference Board, a member driven think tank.

“The ETI rose in May, another small oscillation that we have continued to observe since the ETI started the downward trajectory it's been on since a peak in March of 2022,” said Will Baltrus, associate economist at The Conference Board. “May's uptick signals employment could increase in the second half of 2024, but the ETI's longer-term downward trajectory signals the high level of monthly increases in employment observed post-pandemic could slow down. That said, the Index remains far above its pre-pandemic level, which suggests aggregate job losses are less likely than a deceleration in hiring.”

According to The Conference Board, May's payrolls data showed an increase in employment by 272,000, the 40th consecutive month of growth. Job gains were also seen in the health care, government and social assistance sectors.

Baltrus believes May's increase in the ETI was driven by positive contributions from several components, including the percentage of respondents who said they find “jobs hard to get,” job openings and the percentage of firms with positions they are not able to fill right now.

“Existing labor market tightness is expected to be exacerbated by retirees outpacing entrants into the labor force, which suggests job cuts may not happen any time soon,” Baltrus concluded.

Retail Sales Climb in May, U.S. Census Bureau Reports

By Staff
Wednesday, June 19, 2024 11:33 AM Retail sales continue to rise, according to new data from the U.S. Census Bureau. These figures prompted the National Retail Federation to predict further economic expansion as inflation pressure wanes. 

According to the U.S. Census Bureau, overall retail sales were up 0.1 percent in May, seasonally adjusted month-over-month and up 2.3 percent unadjusted year over year. In April, retail sales fell 0.2 percent month-over-month, however, this represented an increase of 2.7 percent year over year in April.

May’s core retail sales, according to the U.S. Census Bureau, were up 0.3 percent seasonally adjusted month over month and up 2.9 percent unadjusted year over year. This is excluding automobile dealers, gas stations and restaurants. Meanwhile, core retail sales were up 3.5 percent year over year for the first five months of the year.

Advance estimates of U.S. retail and food services sales for May 2024, were $703 billion, up 0.1 percent from the previous month, and up 2.3 percent compared with May 2023, adjusted for seasonal variation and holiday and trading-day differences, but not for price change, the U.S. Census Bureau reported.

Total sales for the March 2024 through May 2024 period were up 2.9 percent from the same period a year ago, according to the U.S. Census Bureau report. Meanwhile, the March 2024 to April 2024 percent change was revised from virtually unchanged to down to 0.2 percent.

High Temperatures to Push Electricity Prices Upward, Energy Information Administration Reports

By Staff
Tuesday, June 18, 2024 2:19 PM Americans can expect to spend more on electricity this summer, according to a new report from the U.S. Energy Information Administration (EIA). The agency is predicting that the average monthly electricity bill will hit $173 between June and August, up from $168 in 2023. Higher summer temperatures are expected to send prices upward this summer, however, lower overall residential electricity prices should keep rates in check. 

According to the EIA, most regions consume 90 percent of their electricity in the summer due to air conditioner usage. Areas such as the Gulf Coast have some of the highest consumption rates, while the Pacific Coast and New England see more moderate usage. 

EIA experts believe residential customers in Pacific Coast states will likely see the biggest increase in electricity prices, by as much as 7 percent. This is due to an increase in the region’s retail price, which is expected to reach 25 cents/kWh, the second highest in the nation.

Meanwhile, residential customers in New England will see lower electricity prices this summer, falling by 7 percent with an average electricity price of 26 cents/kWh.

Residential electricity customers in the Middle Atlantic states including New Jersey, New York, and Pennsylvania will see the largest increase in typical summer bills by as much as $14 per month due to increased electricity use and higher electricity prices.

The Pacific region is predicted to rise an average of $11 per month this summer because of higher prices and similar levels of electricity consumption.

Gas Prices Fall as Consumer Demand Wanes, AAA Reports

By Staff
Monday, June 17, 2024 2:44 PM Gas prices continue to fall despite rising temperatures, according to a new report from AAA that revealed the national average for a gallon of gasoline has slipped two cents to $3.46 in less than a week. The auto multi-service provider stated that the main reason behind the fall is slow demand and an influx in supply. 

“Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer,” said Andrew Gross, manager of AAA public relations.

Recent data from the Energy Information Administration (EIA), finds gas demand rose slightly from 8.94 million barrels per day to 9.04 last week. Meanwhile, total domestic gasoline stocks jumped from 230.9 million to 233.5 million barrels as production averaged 10.1 million barrels per day. 

Experts at AAA believe a continued drop in demand paired with increasing supply and stable oil costs will likely lead to falling pump prices. Earlier this month, VMAIL reported that gas prices were also on the decline despite a high-risk hurricane season. 

Since June 6, 10 states have seen significant changes in gas prices. Gas prices in Ohio rose 17 cents, and prices in California, Nevada and Alaska fell 10 cents. Michigan and Indiana saw an increase of 9 cents. Illinois fell 9 cents, while Florida dropped 8 cents and Washington and Utah each fell 7 cents. Overall, the least expensive market to purchase gas is Mississippi at $2.93.

As of June 12, WTI (West Texas Intermediate oil is another benchmark used by oil market) rose by 60 cents to $78.50 a barrel. U.S. crude oil inventories sit at 4 percent below the five-year average for this time of year.

Convenience Store Profits Skyrocket in 2023, NACS Reports

By Staff
Friday, June 14, 2024 12:00 PM U.S. convenience stores saw record profits in 2023, according to a new report from the National Association of Convenience Stores (NACS). Sales reached more than $859 billion in 2023, of which $327 billion were from in-store sales. The report stated that average shopping basket sales rose 3.7 percent to $7.80. 

Total industry food service sales including, prepared food; commissary; and hot, cold and frozen dispensed beverages, totaled nearly 30 percent of in-store sales, up 1.3 percent compared with 2022. Profits from food services sales reached just over 37 percent of total in-store profits. 

NACS believes a greater acceptance of convenience store food and beverages has helped push sales higher in 2023. The convenience store industry saw an increase of 1.5 percent in brick-and-mortar locations, averaging just over 152,300 stores.

Inflation and other economic pressures hindered sales growth in 2023, with direct operating expenses increasing 3.3 percent to $150 billion, while wages and benefits reached more than $84 billion. 

Despite positive sales growth, direct store operating expenses climbed 3.3 percent to $150.1 billion in 2023, with wages and benefits representing the largest operating cost at $84.2 billion.

Average wages for full-time employees increased 30 cents to $14.73 per hour, while part-time employees earned an average of $13.86 per hour. Overall, the convenience store industry employed more than 2.7 million people across the United States in 2023.

Summer Travel Remains on Par With 2023, Deloitte Report Finds

By Staff
Thursday, June 13, 2024 4:45 PM Higher prices are not putting a damper on summer travel plans, according to new data from the Deloitte 2024 Summer Travel Survey. The survey revealed that 48 percent of Americans plan to travel and stay in paid lodging this summer. This is on par with last year's numbers, however, respondents added that they are planning to take fewer vacations overall. 

Respondents said they expect summer travel costs to increase, with 1 in 5 saying they planned on spending significantly more than last year. 

Air travel is the most popular travel method, with 52 percent of respondents saying they were going to fly this year, compared with 22 percent who said they were reaching their destination by car. 

For many respondents, remote work options are making it easier to make travel plans, with 21 percent reporting they plan on working during their trip. 

The average number of trips taken this summer is expected to reach 2.3, down slightly from 3.1 trips in 2023. Travelers who feel they are doing well financially will spend an average of $528 more, compared to those who feel their economic situation has changed. These travelers are expected to spend an average of $855 less than in previous years. 

Meanwhile, more than a third of non-travelers are planning to stay home due to the current cost of travel, up 8 percent from 2023.