Labor Day Shorts - GDP, mortgages and output; baseball jerseys, 10-year-old cars, Energy drinks and Vistage

It’s a Short Week – time for a short report… 

Economic Bits & Pieces

• GDP for Q2 was revised… up.  From 2.8% to 3%.  Not bad.  The country is still growing.

• You may recall Q1 was 1.4%.

• Target and TJ Maxx posted higher sales for the second quarter, with Target lowering prices and TJ Maxx being, well, TJ Maxx. This indicates that shoppers are looking to save money and tighten their belts.

• The average for a 30-year fixed-rate mortgage dropped to the lowest rate in 2024:  6.35%.

• Worker output – also known as productivity – increased 2.3% in Q2.

• Output increased by 3.3% and wages increased by 1.0%, ergo 2.3%.

• Courtesy of the Bureau of Labor Statistics.

• You are doing more with less or with the help of AI. 

What’s a baseball jersey worth?

• If it’s worn by me, I don’t even know if the thrift store would take it. 

• But if it was worn by Babe Ruth…

• This was the jersey he was wearing when he called his home run during the 1932 World Series.

• Or did he?

• Regardless, after six hours of bidding in Dallas, his jersey went for $24,120,000.

• The buyer wishes to remain anonymous.

• No kidding.  I would, too.  If my wife ever found out I spent $24 million for a shirt…

• Hey, if you have some cash lying around, might as well spend it.

• That’s residual income. 

What’s a 10-year-old car worth?

• Less than a baseball jersey.

• According to iSeeCars, it’s $12,194 nationally.

• $13,984 for southern California.

• The market share of used cars has increased 30% since 2014

• And the prices of used cars have increased by 60% since 2014

• Just as a reference point, inflation from 2014 to 2024 was 33%, of which 22% occurred in the last four years. So, 60% is waaaay above the inflation rate.

• SoCal has the 4th highest increase in used car prices since 2014.

• The 10-year-old model with the highest price increase?

• The Mazda Miata, with an 87% increase in its 10-year-old used car price.

• The car with the highest market share of used cars is the Hyundai Sonata.

• The most expensive metropolitan area for a 10-year-old used car?  West Palm Beach at $14,815.

• SoCal is the 4th highest.

• For our friends in Alabama, the price was $11,682.  That’s 21% less. 

Energy drink, anyone?

• The energy drink market reported decreased sales volumes as people are not spending as much on expensive caffeinated beverages. 

• The 114 mg of caffeine in a 12-oz can of Red Bull costs just under $3.

• On average, an 8 oz cup of coffee has 95 mg.  If you brew it yourself, it’s $0.40/cup.  That’s from personal experience.

• So, if you have two 8 ounce cuppa Joes for $0.80 cents, you get 138 mg of caffeine.  Without the sugar.  Home brewed.

• An 8 oz Pike Place Starbucks short will get you 155 mg of caffeine for $2.85.

• By the way, worldwide coffee revenues are around $200 billion.  That’s according to the Coffee Center at UC Davis.

• Your California Tax Dollars at work.

• If your productivity is up, it stands to reason your caffeine intake should be, too, so I’m giving you the tools to choose your fuel source wisely. 

What is Vistage?

• A fellow I have lunch with about once a month leads several Vistage groups.

• A Vistage group consists of roughly a dozen or so business owners/CEOs who share ideas and best practices with each other and their Vistage leader.

• One of the best conferences I have ever attended is the Vistage Executive Summit, an all-day conference for company CEO’s. Whether you have five employees or 500, if you are a CEO, there’s much to gain from attending.  There are always good takeaways to use when you get back to your office.

• The main speakers have always been excellent, and the breakout sessions are focused on you and your business, albeit with offers to engage the speakers as consultants.

• I recommend reaching out to Frank Fabela to ask about the conference.  It is September 17 in Costa Mesa, California, from 7:15 a.m. to 4:00 p.m.

• That’s in two weeks, folks. 

I am a big advocate of continuous education.  That means going to industry conferences to learn about what is happening in your industry, learn best practices, and come back with good takeaways you can implement.  The most successful business owners do this often and bring employees with them so that they can learn.  It might even help craft a succession plan by engaging your best employees.  Your vendors may even host a dinner with beverages.  Just choose your beverages wisely – getting blitzed is never a good look.

Summer is mostly over, and we are sliding into Q4.