Motor Vehicle Sales: Decline Moderately

January 5, 2016
Motor Vehicle Sales FELL by 4.6% in December to 17.2 million units, compared with market expectations for a small decline to 18.0 million. Vehicle sales are now 2.5% ABOVE their year ago level and have been on an improving trend over the past 5 years. In December, sales of automobiles FELL by 5.2% to 7.1 million units and sales of light trucks FELL by 4.2% to 10.1 million units. Domestic motor vehicle sales FELL by 3.8% to 13.5 million units. Sales of domestic automobiles FELL by 3.1% to 5.4 million and sales of domestic light trucks FELL by 4.3% to 8.1 million. Imported motor vehicle sales FELL by 7.4% to 3.8 million units. Sales of imported automobiles FELL by 11.2% to 1.8 million units and sales of imported light trucks FELL by 3.8% to 2.0 million. Bottom Line: Motor vehicle sales fell moderately in December after holding steady for the last 3 months. Both domestic and imported vehicle sales fell moderately. The Q4 sales average is only 1.1% annualized above the Q3 level. Q3 was 16.3% above Q2 level. Thus, this suggests a sharp deceleration in consumer auto spending in Q4.
Article by contingentmacro