After sliding in the previous three months, U.S. consumer confidence rebounded slightly in November. The Conference Board’s Consumer Confidence Index increased to 102.0, up from the downwardly revised 99.1 reading in October. The biggest issues that continue to weigh on consumers are inflation, geopolitical issues at home and abroad, and higher interest rates.
N.A. (Canada and US) tractor and combine shipments increased for the second consecutive month in October. Shipments totaled 30,162 units, up 24.1% from September but down 7.0% from 32,420 in October 2022. Shipments, on a year-over-year basis, have now declined for five consecutive months and in twenty of the last twenty-one months. Looking on a year-over-year basis, to smooth seasonality, shipments of both tractors and combines declined, sliding 4.3% and 43.9%, respectively.
Now up for the second consecutive month, the October DMI came in at 181.7, up from the revised 180.3 reading in September. Despite the recent recovery, the current DMI is still 8.0% below last October’s level. The DMI is a leading indicator for non-residential spending a year out.
After last week’s tentative agreement with Ford, the UAW has now reached tentative agreements with all three major auto producers, including Stellantis and GM. The agreement with Stellantis was reached over the weekend, and the agreement with GM was reached at the beginning of this week. With tentative agreements in place at all the Big 3 producers, full auto production is expected to ramp up.
