Earlier today domestic auto sales came in a bit weaker than expected. Total numbers are now out. And they are much worse than expected.
The Bloomberg Econoday consensus estimate for total vehicle sales in June was 17.3 million at a Seasonally Adjusted Annualized Rate (SAAR). The actual report shows 16.7 million SAAR sales.
Highlights
The first hard look at consumer spending in June is negative as unit vehicle sales fell a very sharp 4.6 percent to a 16.7 million annualized rate which, outside of March’s 16.6 million, is the lowest rate since April last year. Sales of North American-made vehicles fell 3.7 percent to a 13.2 million pace from 13.7 million with imports down 5.4 percent to 3.5 million. Data on cars and light truck show similar declines. These results are worrisome, suggesting that consumer spending, which surged in April and proved strong in May, may have slowed sharply in June. Today’s results point to a decline for motor vehicle sales in the June retail sales report, a component that showed strength in the two prior months and was a regular source of retail strength during 2015.
Motor Vehicle Sales
Have autos peaked this economic cycle? I think so.
Mike “Mish” Shedlock
This is a syndicated repost courtesy of MishTalk. To view original, click here.
Is that really bad? That’s still selling one hell of a lot of cars.
If sales have actually peaked and are starting a decline as a percentage of our economy it is bad unless there is something equally significant rising to take its place in the overall economy.
I work part time for a local car dealership. They are moving a lot of cars, but a significant percentage of them are leases. The people who buy cars there can get 7 years loans and they do it.
The price of cars is incredible to me. My first house cost less than a Chevy SUV or a Jeep Grand Cherokee.