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 11/1/07 For Oct 2007 | ||||||||||||
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Highlights
Vehicle sales were flat in October coming in at a 7.1 million annual unit rate for U.S.-made light trucks and a 5.0 million rate for U.S.-made cars, levels that are slightly lower than September. Imports appeared to be a bit firmer with especially good results for foreign sports cars. But for trucks, high gas prices, now re-approaching $3 per barrel, no doubt held back sales. Several manufacturers reported disruptions caused by the Southern California wildfires but the effect appears to have been minimal.
Chrysler offered the worst news, posting wide declines and announcing a massive layoff. Chain stores will report their October results next Thursday in results that will settle up expectations for the retail trade report at mid-month. Based on today's vehicle results and early indications from retailers, retail sales for October may not match September.
Motor vehicle sales came in at a 12.2 million annual rate versus a 12.4 million rate in August. For September, we will have competing factors likely affecting the numbers. Consumers have become wary about economic conditions with the recent subprime problems receiving so much attention - plus the economy is slowing. On the other hand, the Fed cut short-term rates by 50 basis points and lower financing rates may have helped sales in the latter part of the month.
Motor vehicle sales Consensus Forecast for October 07: 12.4 million-unit rate
Range: 12.0 to 12.6 million-unit rate
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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. |
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