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Vehicle sales fell to lowest level of calendar year in May
Total vehicle sales fell from 14.5 million annualized units in April to 12.7 million annualized units in May; monthly sales levels were down 24.8 percent year over year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in a new Macro Data Flash report.
"Auto sales fell last month to the lowest level of the calendar year as supply constraints show no sign of easing," said Long. "In May, used car prices rose after three straight months of decline according to Manheim, which may reflect the decline in inventories.
"Honda, Toyota, and Ford have already announced major cuts to production for May as chip shortages continue to plague the industry," Long added. "Higher rates may also be dampening demand, but the larger issues remain on the supply side.”
Car sales fell to 2.7 million annualized units last month, and light truck sales fell from 11.5 million annualized units to 10 million.
Domestic production in April was up 8.4 percent from the same month in 2021. The inventory-to-sales ratio slightly decreased in April to 0.46 percent.
"NAFCU expects auto sales to remain muted and volatile over the rest of the year, as relief from chip shortages looks increasingly unlikely in 2022," concluded Long.
For more up-to-date economic insights from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.