For the first time in almost two years, sales of cars and light trucks in the US dipped – year-on-year- in May. US car and truck sales were around 2% down on the same month of last year. This could herald the beginning of the end of the boom to vehicle sales that has accompanied the US economic boom. The monthly decline is seen as evidence that higher interest rates, coupled to higher fuel costs, are finally impacting demand. Other industries are also reporting slower activity in response to the efforts of the Federal Reserve Board to dampen consumer spending.
Lower sales are reported for most makes, although light trucks appeared relatively resilient. Ford did relatively well in May, helped by strong sales of the Focus and Sport Trac SUV.