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With warmer weather, March light vehicle sales bounced back stronger than expected (16.33M vs. 15.80M), marking a new post-recession high and up 81% from their recession lows. This has been the most dramatic recovery in auto sales in modern times. I note that total employment today is still about 500K shy of its pre-recession high, but auto sales are now back to pre-recession levels. It's been the worst recovery ever, but it's nevertheless a recovery in many ways.
5 comments:
We took the slow road back to here...and here is 10 percent below where we could be...inflation still under 1 percent on PCE deflator...
Oh yes, vehicle sales are storming back with sub-normal interest rates and mortgage type lengths.
There are now 144 months loans available for the cash poor.
http://www.thetruthaboutcars.com/2014/03/average-car-price-affordable-only-to-washington-dc-customers/
I am not seeing a "recovery" -- what I am seeing is economic depression as evidenced by long-term declines in real working wages, real home values, and the employment to population ratio -- I urge everyone to look past the macroeconomic data and consider the realities along Main Street USA -- the only beneficiaries of the current "recovery" have been the select few associated with Federalism and its sponsors from the military-industrial complex, the medical establishment, Wall Street, and Federal employees -- Main Street USA has yet to experience anything that resembles a "recovery" -- far from it -- I guess I am very suspicious of numbers such as automobile sales for this reason -- my issues are not technical, but fundamental...
PS: Beware of those citing growth in stocks as evidence of recovery -- the only numbers that matter in this economic environment are dividends and rents paid -- common share growth is illusion (or delusion depending on your viewpoint)...
I hear you, Dr McKibbin...Vehicles sales are now being driven by consumers with less than stellar credit.
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