U.S. auto sales had a 1 percent increase in July despite tight inventories and economic uncertainties. Sales totaled 1,059,730 light vehicles last month, as a debate over raising the U.S. debt limit capped a month of challenges that scared vehicle buyers. Hit the jump to read the rest of the story.
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“There has undoubtedly been a hangover effect,†said General Motors sales boss Don Johnson, who added that Congressional wrangling “did dampen consumer confidence.â€
Johnson noted “multiple headwinds†in July, including high fuel prices, weak job and housing markets and continued low U.S. inventories stemming from the March 11 Japan earthquake.
TrueCar.com Vice President Jesse Toprak said the market has not regained the strength it showed in the spring.
“July is the poster child of uncertainty,†he said. “It’s a cloudy environment and consumers are not confident about big purchases.â€
Chrysler dealer Ralph Martinez in Wilsonville, Ore., credited healthy supplies with the strong sales at his stores. He said his customers are buying but remain confused about the economy.
“Just when you’re coming up for air, somebody hits you with a stick,†Martinez said.
One measure that did provide a brighter picture: the seasonally adjusted annual sales rate.
The Automotive News Data Center used revised factors from the U.S. Bureau of Economic Analysis to calculate its July SAAR. Automotive News put the figure at 12.2 million – as did Autodata Corp. and Ward’s.
Figures from previous months were also restated. Under those revisions, July came in weaker than the 13 million-plus SAARs of February, March and April – and stronger than the below-11 million figures from May and June.
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