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

On projected volume of approximately 1.139 million systems, US
vehicle sales in October will reach a seasonally changed annual rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
estimates. While this would mark the strongest month-to-month SAAR level
in eight months, the underlying characteristics of the market remain in
flux.” Pockets of automobile stock levels continue to enhance
quicker than anticipated from extremely low levels and
bring welcome news on the supply side of the formula. However,
auto consumers are most likely feeling the pressure of existing economic
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to point to
stock levels as a significant aspect in stemming immediate-term
momentum in car sales levels, the deteriorating financial
conditions are becoming more widespread.” Hindered by greater rates of interest settings and lower levels of
tasks development than previously prepared for, customers are anticipated to
retrench – thus ending up being a significant input element to car demand
levels over the next 12-18 months. In its October 2022 United States Economics
update, S&P Global Market Intelligence team has actually modified
downward its forecast of genuine GDP growth in 2023 from 0.9% to
-0.5%. The base projection now includes a mild economic crisis starting in
the fourth quarter of this year, with an anemic recovery taking
hold in the third quarter of next year.If theres a silver lining, the potential for faster new-vehicle
stock growth ought to permit for downward pressure on lorry
rates and supply some clearance for car customers going to
test the market in 2023.