Global| Oct 04 2005U.S. Vehicle Sales Slide As Truck Sales Collapse
by:Tom Moeller
|in:Economy in Brief
Summary
US sales of light vehicles slid 2.6% m/m to 16.36M last month, according to the Autodata Corporation. The end of manufacturers' employee price discount programs lowered sales generally but higher gasoline prices hit light truck sales [...]
US sales of light vehicles slid 2.6% m/m to 16.36M last month, according to the Autodata Corporation. The end of manufacturers' employee price discount programs lowered sales generally but higher gasoline prices hit light truck sales especially hard.
Sales of US made cars and trucks fell 2.8% (-8.3% y/y) following the 21.8% m/m drop in August. Truck sales added a 6.2% (-16.9% y/y) decline to the 30.9% August slide. Domestic car sales benefited from consumers' switch to fuel efficiency and rose 2.1% (6.0% y/y).
Sales of imported cars & trucks slipped 1.6% m/m (+2.2% y/y). Imported car sales rose 2.6% (10.8% y/y) but truck sales fell another 9.8% (-12.7% y/y) on top of the 10.0% August decline.
Import's share of the US light vehicle market rose slightly m/m to 20.7% versus 19.9% during all of last year.
Gasoline prices spiked 16.8% last month. In addition to the evidence from lower truck sales, consumers' response to the jump is reinforced by a 9.2% (-6.2% y/y) decline in gasoline consumption. Gas consumption typically falls sharply in September with the end of the summer driving season, but the 2005 decline was a record as was the y/y drop.
Last week US retail gasoline prices rose 12.5 cents w/w to $2.93 per gallon (+51.1% y/y) versus an average $2.90 during September.
Gasoline Prices Soar; Heating Oil Set for Winter Hike from the Federal Reserve Bank of Dallas can be found here.
Gasoline Affordability, a 2004 article from the Federal Reserve Bank of St. Louis is available here.
| Light Vehicle Sales (SAAR, Mil. Units) | Sept | Aug | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Total | 16.36 | 16.79 | -6.3% | 16.87 | 16.63 | 16.81 |
| Autos | 7.95 | 7.78 | 7.4% | 7.49 | 7.62 | 8.07 |
| Trucks | 8.41 | 9.01 | -16.4% | 9.37 | 9.01 | 8.74 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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