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July auto sales demonstrate continued growth
Total vehicle sales increased 100,000 annualized units in July and monthly sales levels were up 22.6 percent year over year. NAFCU Economist Noah Yosif analyzed the data in a new Macro Data Flash report.
“While month-over-month growth was subdued, a healthy uptick in year-over-year sales affirms persistent underlying momentum in the vehicles market, driven by expanding inventories that have enabled supply to meet demand,” said Yosif. “The second half of the year comprises more tailwinds than headwinds for the industry, including improved consumer confidence, reduced fears of recession, further deceleration in inflation, and a conclusion to the Fed’s current tightening cycle.”
Car sales remained flat in July but increased 17.8 percent compared to a year ago. Light truck sales also remained flat but increased 18.3 percent year-over-year. Data on units produced – which lags a month behind sales data – showed domestic production decreased 3.4 percent and inventory rose to 0.83 months of sales.
“NAFCU expects these factors will enable vehicle sales to find a more consistent post-pandemic trend, which will set the pace for growth within the second half of the year,” Yosif concluded.
For more up-to-date economic insights from NAFCU's award-winning research team, view NAFCU’s Macro Data Flash reports.