U.S. Car Buyers Are Bullish on the U.S. Economy
Car sales rebounded in July to the highest level since last August, as consumers purchased more than 12 million new vehicles last month at a seasonally adjusted annual rate (see chart above, data here). On a cumulative year-to-date basis, vehicle sales are 14.7% ahead of last year at this time. Compared to the month of July last year, total vehicle sales are up by 5.1% this year, boosted by a whopping 17.6% increase in light trucks versus last July (see related CD post "The Pickup Indicator").
Ignoring last August when sales were artificially high due to the "cash for clunkers" program July auto sales were the highest in almost two years, since September 2008 when 12.52 million units were sold (on annual basis). The American consumers must be pretty bullish on the American economy based on their willingness to buy new vehicles, despite all of the gloom and doom and talk of a "double dip."