U.S. Light Vehicle Sales Rise above 18 Million Unit Pace

In September, U.S. light vehicle sales were up by 10.0% over the year to 18.1 million units (seasonally adjusted annualized rate). This was the fastest pace of sales since July 2005. On a per unit volume basis, 1.44 million light vehicles were sold last month making it the second highest September volume on record. Boosted by the inclusion of Labor Day promotions in September, unit sales were up by 15.8% over the month.

Sales momentum is still solidly on the side of light trucks. Sales increased by 17.5% over the year to September to 10.4 million units and accounted for 57.6% of the light vehicle sales mix. This was the highest share of truck sales recorded since July 2005.

• Sales of domestic trucks increased by 16.2% over the year to 8.6 million units
• Foreign light truck sales, which currently account for slightly less than 20% of the light truck market, surged by 24.5% to 1.8 million units
• Compared with August, sales of pick-ups, SUVs and crossovers were up by 2.2%

Total passenger car sales, including foreign and domestic models, edged up by 1.2% over the year to 7.7 million units.

• Sales of domestic autos were up by 3.1% over the year to 5.7 million units,
• Sales of foreign passenger cars declined by 4.0% to 1.9 million units
• Compared with August, total passenger car sales moved higher by 1.5%

Sales of medium-heavy truck rose by 3.7% over the year in September to 450,000 vehicles. These are heavier trucks are used by firms to haul freight and make deliveries so an increase in demand for these vehicles is an indication of stronger business activity.

Demand for new vehicles 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 17.2 million units to 17.3. 

Source:  www.bea.gov