U.S. Light Vehicle Sales Rise to 17.7 Million Unit Pace

In August, U.S. light vehicle sales were up by 2.9% over the year to 17.7 million units (seasonally adjusted annualized rate). This was the fastest pace of sales since July 2005. On a per unit volume basis, 1.58 million light vehicles were sold last month, a slight decline (-0.5%) compared with year ago levels. That’s not so bad though when one considers there was one less selling day this August compared with last year and the Labor Day weekend fell in September this year.

Sales momentum is solidly on the side of light trucks, especially cross over utility vehicles and full-size pickup trucks. Sales increased by 11.3% over the year in August to 10.2 million units and accounted for 57.5% of the light vehicles sales mix. This was the highest share of truck sales recorded since June 2005.

• Sales of domestic trucks increased by 6.9% over the year to 8.2 million units
• Foreign light truck sales, which comprise about 20% of the light truck market, surged by 34.2% to 2.0 million units
• Compared with July, sales of pick-ups, SUVs and crossovers were up by 3.4%

Total passenger car sales, including foreign and domestic models, fell by 6.6% over the year to 7.5 million units.

• Sales of domestic autos were down by 6.6% over the year to 5.6 million units,
• Sales of foreign passenger cars declined by 6.7% to 1.9 million units
• Compared with July, total passenger car sales were off by 1.1%

Sales of medium-heavy truck have maintained a strong pace, rising by 10.4% over the year in August to 476,000 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.

Reflecting a healthy market for buyers and sellers, both incentives and transaction prices rose in August. 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. It’s looking likely that auto sales will exceed expectations this year, pushing past calendar-year projections of 17.1 million units to 17.2.

Source:  www.bea.gov