Car sales remain strong

January total light vehicle sales exceeded expectations, posting a very strong 12.7% gain over the previous 12 months. Sales are now up over 50% from their early 2009 low, for an annualized gain of almost 15%. This is very strong evidence that the economy's health is improving.

Yes, sales are still very depressed from an historical perspective, but it's always taken years for sales to recover in the wake of important recessions. Light truck sales have not rebounded as fast, but then they didn't decline as much as car sales.