Weakness in new vehicle retail sales experienced during the first half of June has progressed at an accelerated rate through the remainder of the month, pulling the retail selling rate below 8.5m, according to JD Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.
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In the week leading up to the close of the month, June new vehicle retail sales were down 5% compared with one year ago. As fleet sales are not expected to change significantly, the total seasonally adjusted annualised rate (SAAR) may come in well below the 10.9m units previously expected.
“It appears that the volatility in the stock market and downbeat economic reports have caused a decrease in consumer confidence, leading to a self-fulfilling prophecy,” said Jeff Schuster, JDP’s executive director of global forecasting.
“Consumers are clearly hunkering down in light of the current environment, waiting for signs of a renewed recovery.”
Automakers begin announcing July US sales later today.
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