More "Non-End-of-the-World Economic Data"
Thanks to Daniel Gross for that great headline.
1. Automakers reported strong sales gains in November, as "the economy accelerates out of the 2007-2009 slump." U.S. vehicle sales in November of 873,323 light trucks and passenger cars were above last year's sales by 16.9%, led by a whopping 26.6% gain in light truck sales and a more modest 7.4% improvement in passenger car sales. Year-to-date sales of 10.44 million units so far this year are more than one million vehicles ahead of the 9.4 million units sold last year through November. On a seasonally adjusted annual rate basis, vehicle sales in November topped 12 million units for the second month in a row for the first time in more than two years, going back to the late summer of 2008.
2. According to today's ADP National Employment Report, private sector employment increased by 93,000 jobs in November, the largest monthly job gain in three years and the tenth consecutive monthly improvement. October's employment increase was revised upward from a previously reported 43,000 jobs to 82,000, bringing the total gain over the last two months to 175,000 new private-sector jobs. More than half of the job increases in November (54,000) were added by small businesses (fewer than 50 employees).
Now here's a possible connection between these two reports: Pickup trucks are typically purchased by small business owners and entrepreneurs, and the huge increase in November truck sales is an indication of increased business activity for America's small businesses. The increased business activity for small businesses also translates into increased hiring by small businesses, which we saw in ADP's November job report.