More than half (55%) of U.S. retailers surveyed for Cox Automotive’s Q2 Dealer Sentiment Index list the economy as a top concern heading into the second half of the year, followed by market conditions (40%), the political climate (36%), expenses (33%) and interest rates (32%).

Overall sentiment improved to 43, up from 41 in the prior quarter but below Cox’s 50-plus threshold for a “positive” outlook. Dealers’ view of their prospects for the next quarter fell from 56 to 47.

Sentiment toward sales improved to a positive 53 for franchised dealers and remained at a “negative” 44 for independents.

“The gains this quarter are in line with seasonal expectations we’ve seen in the past,” said Mark Strand, deputy chief economist at Cox Automotive. “Sales in March and April were healthy and helped boost current sentiment, but rising inflation, elevated fuel costs and geopolitical uncertainty are weighing on dealer confidence for the months ahead.”

Read the full report at Cox Automotive