Auto Sales Signal Recovering Economy?
Despite talk about soaring gas prices, reports show that car sales have increased 16% from last March and truck sales have risen by nearly 9% from this time last year. Emerging job markets and shorter unemployment lines might have contributed to this influx of auto sales. Similarly, when combined with an increase in GDP, these indicators can signal a healing economy.
Ford's (NYSE: F) F – Series and the Toyota (NYSE: TM) Camry lead the pack with the most units sold from March of last year, while the Ford Focus had the biggest jump in sales, up 64% from last year followed by Toyota Prius (54%+) and Chevy Malibu (53%+).
This year's car sales are the highest since the financial crisis of 2008. General Motors (NYSE: GM) is proud to have the highest gain in car sales of nearly 12% while controlling roughly 16% of the United States' market share followed by that of close competitor, Ford.
While Canada increased its car sales by only 2.8% this past March, Chrysler's (OTC: FIATY) car sales in Canada rose by nearly 8%. Furthermore, Japan's quick recovery from the tsunami may have helped to increase Toyota auto sales this year.
Americans who were in need of a new car and shy of the economic downturn, are now starting to look for and make this big purchase. Eco –friendly cars have made a splash in the eyes of the consumers but larger vehicles are still very much in demand.
Analysts agree that car purchases, much like any big purchases are done in cycles of years. Average Americans claim to replace a car about every 12 years.
This shift in sales is definitely reflective on a growing economy. Consumer confidence has notably increased and low interest rates have encouraged customers to buy. Furthermore, strong indicators coupled with a global recovery signal a growing economy with more to come in the following months.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.