The results of Automotive News’s inaugural Auto Industry Confidence Index survey show U.S. franchised dealers were less optimistic about the industry’s prospects in July than they were in June.

More than half (56%) of surveyed dealers say they are “somewhat pessimistic” or “very pessimistic” heading into the second half of 2025, indicating doubts about the industry’s overall health. The drop in confidence was felt most acutely in the F&I profitability (down 17.4 points to 7.13 out of 100) and fixed ops profitability index (down 10.1 to 69).

“Franchised dealership responses in June about the state of their organization’s performance generated a score of 65 out of 100,” AN’s Mark Hollmer writes. “But regarding their expectations for the industry six months from now, that score fell to 46 out of 100, touching on negative territory.”

Read the full report at Automotive News