Consumer companies ticked up amid signs of slowing inflation in some areas.
Used car prices dropped by a record amount for the month of June, spurring gains in Carvana and other secondhand dealers who have been forced to pay higher prices for inventory. The Manheim Used Vehicle Value Index, a closely watched indicator of car prices, fell 10% in June from the prior year, for its 10th straight monthly retreat and the largest on record.
There are signs of a slowdown in the growth of consumer borrowing, which could foreshadow a drop in overall spending. Total consumer credit rose $7.2 billion in May, down from a revised $20.3 billion gain in the prior month, the Federal Reserve said.
“U.S. consumers have spent at an above-trend pace over the last couple years by leaning on excess savings built up over the course of the pandemic,” said analysts at brokerage BNP Paribas, in a note to clients. “This dynamic is fading – and looks set to end soon, with excess household savings likely to be depleted by year-end.”
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