May Car Sales Surpass Analysts’ Expectations with Confidence
1.6 million vehicles were sold in the U.S. during the month of May, beating analysts’ expectations. This is the “strongest annual sales rate since before the 2008 recession, as transaction prices remained strong and discounts did not increase.”
The annual sales rate climbed up to 16.77 million vehicles, while expectations were closer to 16.1 million. The last time it was this high was February 2007.
According to Bill Fay, Vice President of Toyota, there are two reasons that account for the strong May sales: rising consumer confidence and a stronger demand for new vehicles.
All seven top automakers are reporting stronger-than-expected sales, even General Motors, whose record number of recalls since the beginning of the year could have slowed sales down. GM sold 254,084 vehicles in May, an increase of 12.6 percent.
Double-digit increase in sales were also posted by Nissan (18.8 percent), Toyota (17 percent) and Chrysler (16.7 percent).
The average price of vehicles sold in May was $32,307, “up $653 from a year ago, but down slightly from April.”
Read the full article in Reuters.