Click to enlarge.
After U.S. Labor Day holiday weekend sales, initial August new-vehicle sales results, as expected, are indicating healthy volume gains, according to Cox Automotive.* Full results will be in by the end of the week, but early reports suggest the extra selling days helped the auto market navigate August with strength, according to Cox Automotive Chief Economist Jonathan Smoke in his latest Auto Market Report released this morning. (Read AutoInformed.com on Slight Labor Day Jump Forecast for August US Auto Sales)**
“New- and used-vehicle sales volumes are at the highest level for 2024. With growing demand, supply has tightened, and prices are creeping up. For the first time this year, the popular 3-year-old product – a staple of the used-vehicle business our team tracks closely – experienced a price increase in both the wholesale and retail markets,” said Smoke.
Smoke Data Points and Highlights
- Real Gross Domestic Product (GDP) increased at an annual rate of 3.0% in the second quarter of 2024, according to the “second” estimate released last week from the initial estimate of 2.8%.
- Consumer spending growth accelerated to an impressive 0.5% in July, up from the 0.3% growth seen in June.
- The Conference Board’s consumer confidence index increased by 1.4% in August, an outcome better than initially expected.
- Real GDP growth on a year-to-year basis remained steady at 3.1%.
- Spending on goods saw a hike of 3.0% from an initial 2.5% increase, while service spending was revised up to a 2.9% gain from 2.2%.
- Expenditure on motor vehicles and parts jumped 3.3% after a 3.0% decline in June from the CDK software disruptions.
Personal Consumption
- The Personal Consumption Expenditure Index (PCE), the Federal Reserve’s key measure of inflation, increased 0.2% in July, as expected, after increasing just 0.1% in June.
- Factoring in inflation, real spending increased 0.4% in July, which was more than the 0.3% growth expected and followed an upwardly revised 0.3% gain in June.
“September is going to be an interesting test for demand, with expectations that rates should be declining soon, but with tight supply hindering affordability and sales,” Smoke said.
*Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.
**AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
August U.S. Auto Sales Highest Year-to-Date
Click to enlarge.
After U.S. Labor Day holiday weekend sales, initial August new-vehicle sales results, as expected, are indicating healthy volume gains, according to Cox Automotive.* Full results will be in by the end of the week, but early reports suggest the extra selling days helped the auto market navigate August with strength, according to Cox Automotive Chief Economist Jonathan Smoke in his latest Auto Market Report released this morning. (Read AutoInformed.com on Slight Labor Day Jump Forecast for August US Auto Sales)**
“New- and used-vehicle sales volumes are at the highest level for 2024. With growing demand, supply has tightened, and prices are creeping up. For the first time this year, the popular 3-year-old product – a staple of the used-vehicle business our team tracks closely – experienced a price increase in both the wholesale and retail markets,” said Smoke.
Smoke Data Points and Highlights
Personal Consumption
“September is going to be an interesting test for demand, with expectations that rates should be declining soon, but with tight supply hindering affordability and sales,” Smoke said.
*Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.
**AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.