An increase to 13.7 million riyals

by Calculated risk on 9/23/2022 04:09:00 PM

From WardsAuto: Tracking US light vehicle sales in September to a 5-month high (paid content). Brief excerpts:

“Despite pent-up demand waiting to be tapped, without an increase in incentives combined with dealers selling fewer cars above sticker price, dwindling availability of reasonable offers on dealer parts will delay sales gains from growth Expected in stock.”

Click on the chart for a larger picture.

This chart shows actual BEA sales (in blue) and Wards forecast for September (in red).

The Wards forecast that at 13.7 million SAAR, it will mostly be a 4% increase from last month, and an 11% increase from last year (sales started to weaken in mid-2021, due to supply chain issues).

Auto sales are usually a transmission mechanism of FOMC (away from housing) policy. However, this time around, auto sales have been suppressed by supply chain issues, and probably won’t be significantly affected by higher interest rates.

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