Light Vehicle Sales Accelerate

In July, U.S. light vehicle sales were up by 6.2% over the year to 17.5 million units (seasonally adjusted annualized rate), accelerating from June’s tepid increase of 1.3%. On a per unit volume basis, 1.51 million light vehicles were sold last month, an increase of 5.3%. Year to date, 10.0 million passenger cars and light trucks have been sold in the U.S.



Total passenger car sales, including foreign and domestic models, declined by 1.8% over the year to 7.6 million units.

• Sales of domestic autos were up by 2.1% over the year to 5.8 million units,
• But a precipitous drop in sales of foreign passenger cars of 12.3% (to 1.8 million units) overwhelmed the slight increase in domestic auto sales
• Compared with June, total passenger car sales were up by 2.7%.

Sales of pick-up trucks and SUVs continue to dominate demand for light vehicles. Sales increased by 13.3% over the year in July to 9.8 million units and accounted for 56% of the light vehicle sales mix. This was the highest share of truck sales recorded since December 2005.

• Sales of domestic trucks increased by 11.1% over the year to 8.1 million units
• Foreign light truck sales, which comprise only about 20% of the light truck market, shot up by 24.7% to 1.7 million units
• Compared with May, sales of pick-ups, SUVs and crossovers were up by 3.3%

Sales of medium-heavy truck continued at strong pace, rising by 18.7% over the year in July to 496,000 vehicles. Since these heavier trucks are used by firms to haul freight and make deliveries, an increase in demand for these vehicles is an indication of stronger business activity.

Most auto makers reported sales gains in July with strong retail (as opposed to fleet) sales. Customers were drawn to dealer show rooms by slightly higher incentive levels last month. Momentum in the automotive industry is expected to carry forward through the rest of the year, bolstered by moderating gasoline prices and positive news regarding economic growth and job creation.

Source: www.bea.gov