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 11/3/08 For Oct 2008 | ||||||||||||
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Highlights
In shockingly weak numbers, total domestic-made light vehicle sales came in at a pathetic 7.7 million annual unit sales rate. The rate is the lowest since the early 80s, also a time of recession. The car rate of 3.9 million is the lowest yet in data going back to 1967. The 7.7 million rate compares with 9.5 million in September and points to a major decline in the motor vehicle & parts component which makes up about one fifth of total retail sales. Vehicle sales are contracting faster than other retail sectors and are making up an ever thinning proportion of total sales.
Total sales, based on comments from retailers, are also likely to be a disappointment in October. Total retail sales contracted in August and September and a contraction in October would be the first string of three since, once again, the early 80s. Markets showed no reaction to the results which nevertheless offer the first hard evidence of retail disappointment for October.
Sales of domestic motor vehicles proved very weak in September. Unit sales of North American-made vehicles fell to an annual rate of 9.4 million, down from 10.4 million in August. While weakness is partly related to the end of discounts, the trend is not good and likely reflects reduced credit availability and consumers retrenching.
Motor vehicle domestic sales Consensus Forecast for October 08: 9.2 million-unit rate
Range: 8.4 to 9.6 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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