This article was published by S&P Global Mobility and not by S&P Global Ratings, which is an independently handled division of S&P Global.

On predicted volume of approximately 1.139 million units, United States
auto sales in October will reach a seasonally changed yearly rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
price quotes. While this would mark the greatest monthly SAAR level
in 8 months, the underlying characteristics of the market remain in
flux.” Pockets of vehicle inventory levels continue to improve
faster than expected from extremely low levels and
bring welcome news on the supply side of the equation.
car consumers are likely feeling the pressure of current financial
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to point to
stock levels as a major aspect in stemming immediate-term
momentum in car sales levels, the deteriorating financial
conditions are becoming more prevalent.” Hindered by higher rate of interest settings and lower levels of
tasks development than previously expected, customers are expected to
retrench – consequently becoming a major input factor to automobile need
levels over the next 12-18 months. In its October 2022 US Economics
update, S&P Global Market Intelligence team has actually modified
downward its forecast of genuine GDP development in 2023 from 0.9% to
-0.5%. The base forecast now consists of a moderate economic downturn starting in
the 4th quarter of this year, with an anemic recovery taking
hold in the 3rd quarter of next year.If theres a silver lining, the capacity for faster new-vehicle
stock growth should permit down pressure on vehicle
pricing and supply some clearance for automobile consumers ready to
test the market in 2023.