On December 22nd WardsAuto, a publication and industry consultant, projected that automobile sales in the United States would decrease slightly in December compared to the same month a year earlier, with the seasonally adjusted annualized sales rate being 17.7 million vehicles. Vehicle manufacturers are to report the December sales figures on January 3rd.
According to WardsAuto, December auto sales will probably shrink 0.46% year-on-year to 1.625 million vehicles. In regard to the entire 2016, WardsAuto forecast 17.41 million vehicles sold, a figure which would exceed the record high set in 2015 (17.39 million vehicles).
Two other auto industry consultancies, J.D. Power and LMC Automotive, projected that December would mark an approximately 2% drop in auto sales across the United States, while 2017 would see strong sales – within a range between 17.4 million and 17.5 million.
Auto sales, as an indicator, provide an insight into consumer confidence, while the latter is tightly related to consumer spending. Higher auto sales would suggest a greater confidence and better financial prospects for consumers and, therefore, a greater willingness to spend.
The monthly report by the US Bureau of Economic Analysis, released yesterday, showed personal spending in the United States expanded 0.2% in November compared to a month ago, following a revised up 0.4% increase in October. However, Novembers gain rate has been the lowest since a flat reading reported in March. Market consensus pointed to a 0.3% increase.
Spending on non-durables edged up 0.1% in November, sharply decelerating from a 1.1% surge reported in October, while spending on durables shrank 0.6% last month, following a 1.1% increase in October. On the other hand, consumers spent more on services in November (up 0.3%, accelerating from a 0.1% growth in October).
Personal income, at the same time, remained unchanged in November, confounding analysts median forecast of a 0.3% increase.
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