Charts of the Week
U.S. Total Vehicle Sales
Chart of the Week for June 12, 2015 - June 18, 2015
U.S. vehicle sales in May were 17.71 million units on a seasonally adjusted annualized rate ("SAAR") basis, which is the highest level of sales since July 2005, and 49.6% higher than May 2010 as shown in the chart above. Sales of both cars and light trucks increased during the month, and were 6.1% higher year-over-year. Economists are noting that strength in vehicle sales is helping to offset weakness in other areas of the U.S. economy such as energy production (hurt by falling energy prices) and exports (hurt by the strength of the U.S. Dollar).
Steadily improving employment conditions, both more jobs created and higher wage growth, are strong supports for increased U.S vehicle sales. Factors including long-term financing, low interest rates, and expanded credit availability to subprime borrowers are keeping vehicle affordability high. Also, used car prices remain high, enabling buyers to trade in their cars at favorable prices.
Posted by: sarah_oz@yahoo.com
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