U.S. Light Vehicle Sales Weaken in August
by:Tom Moeller
|in:Economy in Brief
Summary
- Both light truck and passenger car sales decline with strained consumer buying power.
- Domestic vehicle sales fall along with imports.
- Imports' market share slips.
The Autodata Corporation reported that U.S. light vehicle sales dropped 5.7% (-2.3% y/y) to 15.13 million units (SAAR) in August following a 4.0% July rise to 16.04 million. It was the lowest level of sales since January. So far in Q3, the 15.59 average level of sales follows 15.86 million units in Q2 and 15.44 million in Q1. Consumers buying power recently has been strained. The decline in August vehicle sales accompanied 1.1% y/y growth in real disposable income through July which compared to 3.8% growth logged last year. Slower income growth accompanied a rise in the unemployment rate to 4.3% in July from 3.5% twelve months earlier.
Sales of light trucks declined 6.0% (-0.9% y/y) during August to 12.14 million units (SAAR) and more than reversed their 3.4% July rise. Purchases of domestically-made light trucks weakened 5.2% (-2.9% y/y) to 9.23 million units, after rising 1.1% in July. Sales of imported light trucks declined 8.2% (+5.8% y/y) to 2.91 million units following July’s 11.2% increase.
Trucks 80.2% share of the light vehicle market last month compared to 80.5% in July and 79.1% in August of last year. The share was 79.4% during all of 2023.
Auto sales fell 4.5% (-7.7% y/y) to 2.98 million units (SAAR) in August following a 6.1% July rise. Purchases of domestically-produced cars weakened 5.7% (-4.4% y/y) last month to 2.16 million units after rising 4.6% in July. Sales of imported autos edged 1.2% lower (-14.4% y/y) to 0.83 million units after rising 12.0% in July.
Imports' share of the U.S. light vehicle market declined to 24.7% in August from 25.0% in July. It compared to a May 2023 low of 22.3% and reached a high of 26.3% in November of last year. Imports' share of the passenger car market rose to 27.9% last month from 26.9% in July. It reached a high of 37.9% in September 2021. Imports' share of the light truck market eased to 24.0% last month from 24.6% in July.
U.S. vehicle sales figures can be found in Haver's USECON database. Additional detail by manufacturer is in the INDUSTRY database.
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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