Morning Business Report: Shoppers tighten budgets as automakers face slowing sales

Americans are scaling back their spending, and the auto industry is feeling the impact.

(LILAMAX)- Americans are scaling back their spending, and the auto industry is feeling the impact. Shoppers are downsizing, buying used vehicles, stretching out loan terms, and waiting longer for deals. Analysts had expected a third-straight year of rising sales as automakers recovered from pandemic-era shortages, but instead, buyers are pushing back. Cars are sitting longer on dealer lots, discounts are increasing, and loan defaults among lower-income borrowers are climbing.

Gen Z shoppers are also pulling back sharply. A recent Deloitte survey shows they expect to cut holiday spending by 34% — more than any other age group. Even college-educated young adults, typically strong consumers, are feeling the squeeze as housing, student-loan payments, groceries, and restaurant prices rise.

Stocks opened December on shaky ground. Japanese debt concerns rattled U.S. markets, and Bitcoin fell to its lowest level since April.

Travelers are learning more about upcoming Real ID requirements. Starting February 1, air passengers without a Real ID will be charged a $45 fee. Travelers can fill out the form and pay on Pay.gov before arriving, or they can complete the process at the airport. The 2005 law requires Real ID-compliant identification or another approved document to board domestic flights.

In media news, Warner Bros. Discovery is reviewing a second round of bids, including a mostly cash offer from Netflix. Paramount and Comcast also prepared new proposals over the Thanksgiving weekend. While Netflix is offering all cash, Paramount is the only bidder seeking the company’s full slate of cable channels, including CNN, TNT, and Discovery.