Unit sales of domestically produced cars and light duty trucks (including sport utility vehicles and mini-vans). Individual manufacturers report usually report sales on the first business day of the month. Motor vehicle sales are good indicators of trends in consumer spending. Why Investors Care
| Released on 9/4/07 For Aug 2007 | ||||||||||||
| ||||||||||||
Highlights
Volatility in the financial markets is appearing to have limited economic effect, at least on light vehicle sales which proved surprisingly strong in August, at a 12.6 million annual rate for domestic-made vehicles vs. 11.4 million in July. Sales of trucks were especially strong, at a 7.5 million rate and the best rate since February. The gain reflects the dip in gas prices during August, down roughly 15 cents a gallon in early indications to about $2.80.
Sales of cars were less strong in August, at just over a 5.0 million rate. Sales of import-made vehicles lagged due to the fact that the bulk of import sales is in cars not trucks. Total unit sales are likely to exceed 16 million, well up from July's 15.5 million rate that was the lowest in nearly two years.
Today's data didn't affect Tuesday's financial markets but may affect markets overnight and on Wednesday, as the results are certain to boost expectations for retail trade data a week from Friday. Next data on retail sales will be August chain-store results on Thursday.
Motor vehicle sales were soft once again in July. Domestic-made vehicles sold at an annual rate of 11.5 million, down from 11.6 in June and well down from a 12.2 million rate in May. Sales of imports were at a 4.0 million rate, combining for a 15.5 million total rate, down from 15.4 million in June and the lowest rate in nearly two years. Given that gasoline prices are down, we might see a nudge up in motor vehicle sales but consumer confidence has been slipping and could push sales down.
Motor vehicle sales Consensus Forecast for August 07: 12.0 million-unit rate
Range: 11.8 to 12.3 million-unit rate
![[Chart]](chart.gif)
|
Motor vehicles sales slowed notably in 2006 as a result of higher interest rates and a jump in gasoline prices but remained at reasonable levels due to strong income growth. Late in 2006 and in early 2007, gasoline prices were down from 2006 highs but moderating economic growth kept sales from rebounding. Truck shares hit their peak in 2005 when gasoline was cheap and remain sharply lower since gasoline prices spiked in 2006. |
| 2007 Release Schedule | ||||||||||||||||||||||||||
|
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}