Truckonomics: Truck Sales Shift Into High Gear
The retail sales report for May was generally considered to be a disappointing sign that the economic recovery was stalling, as consumers unexpectedly "ratcheted back spending on everything from cars to clothing in May," according to the WSJ. But on both a year-to-year basis, and year-to-date basis, vehicle sales are booming, rising by 19.1% in May this year vs. May last year, and by 16.6% year-to-date compared to 2009 sales through May (data). So we maybe shouldn't give up yet on the American consumer, and here's a report about robust consumer spending in May on an important economic indicator: trucks (see related CD post here):
NEW YORK (AP) – "If you want a hint about the economic recovery, follow that truck. Pickups are a kind of rugged indicator of the nation's financial health. When times are good, contractors buy more of them to carry tools around for landscaping and lumber to build homes. Weekend haulers also gravitate to them even though cars get better mileage.
And lately sales have started shifting into a higher gear. Americans bought 151,000 pickups last month, 19 percent more than a year ago. Sales of full-size pickups, especially popular among contractors and builders, grew even faster. This year, pickup sales have been gaining momentum. Through May, Americans bought 11 percent more than they did in the first five months of last year and the sales pace has been accelerating."