US auto sales hint slowdown as economic woes weigh – S&P Global Mobility

Car sales in the United States are expected to remain steadfast in August but are showing early signs of a slowdown, S&P Global Mobility said, amid contract negotiations with workers and rising interest rates.

New light vehicle sales in August are estimated to be 1.34 million units, up 18% year-over-year, according to the sector-focused report. “Rising interest rates, credit tightening and new vehicle pricing levels slowly decelerating remain pressure points for consumers,” said Chris Hopson, principal analyst at S&P Global Mobility.

The automotive research company also lowered its annual forecast to 15.2 million units of new light vehicles estimated to be sold in the U.S. from sales of 15.7 million units projected in July.

Supply of vehicles could be disrupted in North America as negotiations with labor unions have been heated up lately, the report added. UAW on Friday said members voted overwhelmingly in favor of authorizing a strike at the Detroit Three automakers if an agreement is not reached before the current four-year contract expires on Sept. 14.

via Reuters