Consumer Spending Slows Again, Tariff Uncertainty Looms, and Manufacturers Rethink Production

**What happens when consumer spending slows, trade policy remains uncertain, and automakers begin reassessing where vehicles are built?** In this episode of *The Auto Market Brief*, host Erin Keating and Cox Automotive Chief Economist Jeremy Robb examine the latest economic indicators, including new Q2 GDP readings, personal income data, consumer spending, inflation, and used-vehicle market activity. While income growth remains positive and vehicle demand continues to show resilience, signs of softer consumer spending have raised new questions about the economic outlook. **Consumer spending slows for a second consecutive month** Personal income growth remained solid, but spending growth moderated again, highlighting the ongoing pressure many consumers face as affordability challenges persist. The discussion explores what these trends may signal for the broader economy and automotive demand. **Tariff uncertainty continues to influence business decisions** As discussions around Canadian imports, USMCA, and future trade policy continue, automakers are watching closely. The conversation explores why product and production strategy may matter as much as the tariffs themselves when companies make long-term investment and production decisions. **Manufacturers are rethinking production strategies** From Honda and Nissan to Lincoln, Mercedes-Benz, and Jaguar Land Rover, several manufacturers are making decisions that reflect changing views on production, localization, capacity planning, and supply chain resilience. The episode also covers inflation, Jackson Hole Symposium expectations, Manheim Market Report trends, used-vehicle demand, August sales expectations, and the broader forces shaping today's automotive market. The Auto Market Brief delivers timely data, clear context, and practical insight to help industry leaders make smarter decisions—what's happening now, and what's coming next. The Auto Market Brief is powered by Cox Automotive. For more industry insights and expert perspectives, visit our Insights Hub at Cox Automotive Insights.