U.S. Light Vehicle Sales Reach Highest Level Since 2006

Sales of light vehicles during 2014 improved 5.8% y/y to 16.49 million units, the highest level since 2006. Moderate pricing has been a factor in lifting sales. Since 2006, the CPI for new vehicles rose at a 0.9% annual rate. During December, sales slipped 1.7% m/m to 16.92 million (SAAR) but remained up 9.0% y/y. During the last six months, however, sales were little changed.

Light trucks led sales higher last year with a 9.9% gain to 8.58 million units. December sales of 8.76 million were up 12.5% y/y. Sales of U.S. made trucks rose 11.4% for the year to 7.50 million while December sales were up 13.9% y/y to 7.70 million. Imported light truck sales edged 0.5% higher for the year to 1.08 million and gained 3.6% y/y in December to 1.07 million units.

Auto sales posted a modest 1.7% increase to 7.91 million units during all of last year. Sales of 8.16 million in December were up 5.4% y/y. Domestic auto sales increased 3.7% last year to 5.68 million while December auto purchases gained 11.1% y/y to 5.88 million. Working 2.9% lower last year to 2.23 million were sales of imported cars. For December, sales were off 7.0% y/y to 2.27 million.

Imports share of the U.S. light vehicle market fell to 20.1% during all of last year then to 19.7% in December. These figures compare to 30.7% in February, 2009. Imports share of the U.S. auto market fell to 28.2% last year compared to a 2009 high of 35.3%. The share fell further last month to 27.8%. For light trucks, imports share fell to 12.6% during all of last year then to 12.2% in December. These figure compare to a 23.8% high early in 2009.       

U.S. vehicle sales figures can be found in Haver's USECON database.

Remarks at a Panel Discussion on Monetary Policy Normalization: Graceful Exit or Bumpy Ride? by Eric S. Rosengren, President & CEO of the Federal Reserve Bank of Boston can be found here.