Auto Sales Climb in First Half of 2018

Predictions for Slow Start Appear Unfounded

Predictions for a slower 2018 might have been premature. With half of the year gone, sales are up nearly 2% industrywide as strong March-through-June numbers overcame declines from the beginning of the year.

The seasonally adjusted annual rate (SAAR), a measure of what full-year sales would be based on June’s results, hit slightly less than 17.5 million, well ahead of May’s numbers and much better than June 2017.

Insatiable market desire for crossovers and more-generous cash-back deals played big roles in the numbers.

The numbers might have been better in recent months than had been commonly thought. General Motors stopped releasing monthly sales totals earlier this year but is releasing quarterly numbers. And GM‘s second quarter was up 4.6%, a higher growth rate than the overall industry.

Some analysts are predicting a weaker second half for the year, but going into 2018, most predictions had been for a weak first half followed by improvements later in the year. Lots of question marks surround the industry, such as the impacts of tax relief, the future of President Donald Trump’s trade actions, and how consumers will react to rising interest rates on auto loans.

 

Today's Motor Vehicles - Robert Schoenberger

  • 17 July 2018
  • Author: Cynthia
  • Number of views: 79
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