Econoday Economic Report: Motor Vehicle Sales July 3, 2012

2012 Economic Calendar

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Motor Vehicle Sales

Released On 7/3/2012 For Jun, 2012

	Prior	Consensus	Consensus Range	Actual
Domestic Vehicle Sales	10.6 M	10.0 M	10.8 M to 11.0 M	10.8 M
Total Vehicle Sales	13.8 M	13.9 M	13.7 M to 14.3 M	14.1 M

Highlights
Consumers were buying cars and trucks last month based on unit sales which rose to a 14.1 million annual rate from May's rate of 13.8 million. Sales of both cars and trucks show similar gains, gains that point to strength for the motor vehicle component of the June retail sales report. Filling out expectations for the entire retail sales report will be chain-store reports on Thursday.

Market Consensus before announcement
Sales of total light motor vehicles in May fell a sizable 4.4 percent from April to an annual rate of 13.8 million which was the lowest rate of the year. May was a disappointment especially given industry and press reports that the month's sales were strong. Nonetheless, the May pace was quite a bit healthier than the recession low of 6.7 million for April 2009 and even a recent low of 11.6 million seen in June 2011.

Definition
Unit sales of motor vehicles include domestic sales and foreign sales, otherwise referred to as imports. Domestics are sales of autos produced in the U.S., Canada, and Mexico. Imports are U.S. sales of vehicles produced elsewhere. These are for light vehicles which include all passenger cars and light trucks up to 14,000 pounds gross weight (including minivans and sport utility vehicles). Individual manufacturers usually report sales on the first business day of the month. One of the first tabulators of the data is Autodata Corporation. Motor vehicle sales are good indicators of trends in consumer spending and often are considered a leading indicator at business cycle turning points. Why Investors Care

Motor vehicles sales slowed notably in 2008 and 2009 due to recession. Recovery boosted sales in 2010 and early 2011 before economic growth slowed. Truck shares hit their peak in 2005 when gasoline was cheap. Trucks have since oscillated sharply with spikes in gasoline in 2008 and 2010.
Data Source: Haver Analytics

2012 Release Schedule

Released On: 1/4 2/1 3/1 4/3 5/1 6/1 7/3 8/1 9/4 10/2 11/1 12/3

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