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US Light Vehicle sales totaled an estimated 1.28 million units in December, according to an analysis just released by LMC Automotive.* This is a Year-over-Year increase of 7.2%, with the same number of selling days as December 2021. The year end was not one to celebrate, though. During each year between 2014 and 2020, December sales were at 1.5 million units or above. “A combination of ongoing problems with the availability of vehicles and unfavorable economic conditions are keeping the market relatively subdued,” LMC said.
However, December posted the highest volumes of 2022, ahead of March by ~26,000 units. The daily selling rate was estimated by LMC as 47,500 units/selling day, compared to 44,900 units/selling day in November. LMC thinks that shows how the annualized selling rate was affected by historical seasonality rather than the pace of sales necessarily slowing down. According to preliminary estimates, retail sales totaled around 1,057,000 units, unchanged from December 2021, while fleet accounted for approximately 225,000 units, representing 17.6% of the total market. Continue reading
US December Unemployment at Record Low of 3.5%
The Bureau of Labor Statistics reported today that the American economy added 223,000 jobs in the month of December as the unemployment rate fell to a historic low of 3.5% as more people entered the workforce and the Biden Administration recovery continued. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance sectors. The unemployment rate at 3.5% in December has remained in a narrow range of 3.5% to 3.7% since March. The number of unemployed persons was down to 5.7 million in December.
Nevertheless, the Federal Reserve seems determined to send the US economy into a deep recession. The Fed has done this in the past with reckless interest rate increases from an ideology that thinks it is good when people lose jobs to keep demand and inflation down. However, consider that during December, average hourly earnings for all employees on private non-farm payrolls rose by 9 cents, or a mere 0.3%, to $32.82. During the past 12 months, average hourly earnings have increased by 4.6%. In December, average hourly earnings of private-sector production and non-supervisory employees rose by 6 cents, or 0.2%, to $28.07. AutoInformed doesn’t consider the latest data as cause for inflationary worries, let alone more interest rate increases. (Autoinformed.com: Federal Reserve Chair Powell Says Inflation Remains Too High) Continue reading →