U.S. Light Vehicle Sales Bounce Back in May

Light vehicle sales in May were up by 6.3% over the year to 17.7 million units (seasonally adjusted annualized rate), the fastest sales pace in nearly 10 years. On a per unit volume level, 1.63 million light vehicles were sold, an increase of 1.7% compared with the same period last year. On a month-to-month basis, sales were up by 8.4%.

Total passenger car sales, including foreign and domestic models, edged up by just 0.3% over the year to 7.9 million units.

• Sales of domestic autos increased by 3.8% over the year to 5.8 million units
• Foreign auto sales plunged by 8.5% to 2.1 million units
• Compared with April, total passenger car sales rose by 10.2%, end a three month decline 

Light trucks, SUVs and crossover utility vehicles remain in high demand. Sales increased by 11.7% over the year to 9.8 million units and accounted for 55.4% of the light vehicle sales mix.

• Sales of domestic trucks increased by 8.9% over the year to 8.1 million units
• Foreign light truck sales, which comprise only about 20% of the light truck market, were up by 27.2% to 1.7 million units
• Compared with April, sales of light trucks increased by 8.3% 

Sales of medium-heavy trucks shot up by 12.5% over the year in April and by 2.1% over the month. Since these are vehicles used by firms to haul freight and make deliveries, an increase in sales of these larger trucks is an indication of stronger business activity.

American car buyers seem undeterred by the recent ups and downs in the economy. The strong sales rebound last month has some analysts considering an upgrade from current light-vehicle sales projections of 16.9 million units for 2015. 

Source:  www.bea.gov