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
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