U.S. Car Sales Pace Set To Remain Strong.
August Annual Rate 17.81 Million, The Highest Since July 2005.
U.S. light vehicle sales are likely to remain strong in the current quarter as the improved jobs market, gains in disposable income and housing market improvements boost consumer confidence, according to Standard & Poors.
In August, U.S. light vehicle sales hit 1,577,179. That’s a 0.6 per cent drop from a year ago, when Labour Day was early and the holiday weekend’s sales were included in August. This discrepancy is reflected in the annual rate of sales, which rose even though fewer vehicles were sold. The August annual rate was 17.81 million, the highest since July 2005.
S&P said August sales signalled that consumer confidence has remained steady despite growing concerns about the economic impact of China uncertainty.
“Our economists believe that early signs from the consumer front are pointing to yet another strong quarter for domestic demand. The outlook for U.S. real consumer spending over the remainder of the year appears relatively bright, supported by the improved job market, solid gains in real disposable income, modest consumer price inflation, and a housing market this is finally gaining traction,” S&P said.
The S&P statement preceded the U.S. Federal Reserve’s decision to keep interest rates unchanged.