This post was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately handled division of S&P Global.

On predicted volume of approximately 1.139 million units, United States
automobile sales in October will reach a seasonally adjusted annual rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
price quotes. While this would mark the greatest month-to-month SAAR level
in eight months, the underlying characteristics of the market stay in
flux.” Pockets of car stock levels continue to improve
quicker than anticipated from extremely low levels and
bring welcome news on the supply side of the formula.
automobile consumers are likely feeling the pressure of existing economic
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to indicate
inventory levels as a significant consider stemming immediate-term
momentum in auto sales levels, the deteriorating economic
conditions are becoming more common.” Hindered by greater rate of interest settings and lower levels of
jobs development than previously prepared for, consumers are anticipated to
retrench – thereby ending up being a significant input aspect to auto need
levels over the next 12-18 months. In its October 2022 United States Economics
update, S&P Global Market Intelligence team has modified
downward its projection of real GDP development in 2023 from 0.9% to
-0.5%. The base projection now includes a moderate economic downturn beginning in
the 4th 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 development need to permit down pressure on vehicle
rates and offer some clearance for auto consumers happy to
test the marketplace in 2023.