On predicted volume of approximately 1.139 million systems, US
car sales in October will reach a seasonally changed yearly rate
( SAAR) of 14.7 million systems, according to S&P Global Mobility
estimates. While this would mark the greatest regular monthly SAAR level
in 8 months, the underlying dynamics of the marketplace remain in
flux.” Pockets of lorry inventory levels continue to improve
faster than gotten out of extremely low levels and
bring welcome news on the supply side of the formula.
car consumers are likely feeling the pressure of existing financial
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to point to
stock levels as a significant element in stemming immediate-term
momentum in vehicle sales levels, the weakening economic
conditions are becoming more common.” Hindered by greater rates of interest settings and lower levels of
jobs growth than formerly prepared for, customers are expected to
retrench – thus becoming a significant input element to car demand
levels over the next 12-18 months. In its October 2022 US Economics
upgrade, S&P Global Market Intelligence team has actually revised
downward its forecast of genuine GDP development in 2023 from 0.9% to
-0.5%. The base forecast now includes a mild recession beginning 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 potential for faster new-vehicle
stock development need to permit for down pressure on car
pricing and provide some clearance for vehicle customers going to
test the marketplace in 2023.

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