Over the last several years auto sales have been increasing at a steady pace. This is very good news for those that benefit from an improved economy. A total of 1.19 million cars, trucks, vans and SUVs were sold in the month of September. This is a 13 percent increase from one year ago. The 21 automakers that sell vehicles in the United States saw mixed results when it comes to growth but the overall automobile market looks very strong.
Some analysts feel as if the number of cars sold in a month is a strong indicator of the overall economy. When many people are looking for Craigslist used cars they are not going to be spending as much money. Rather than spending tens of thousands of dollars these individuals are looking to spend under $1500. With a large percentage of the population looking to avoid making a new car purchase it stands to reason that the economy is not in good shape.
Moving forward into October and September 2012 some analysts will be looking at retail sales. Car sales slow down a little bit as Americans start to look for electronics, furniture and appliances. Some of the time these purchases are made as Christmas gifts. There have already been some Black Friday sales opportunities released which means retailers will be pushing lower prices very hard.
Although Ford and GM are greatly struggling in Europe they are looking solid in the United States. If the big three automakers can turn things around and get to new multi year highs when it comes to sales this could do a lot for the psychology of the United States consumer. Some of the metrics that will be released in the next few weeks will help to propel the Dow Jones Industrial Average to a new all time high or a new multi month low.