S&P Global Mobility predicts strong monthly SAAR for October

S&P Global Mobility predicts strong monthly SAAR for October

On predicted volume of roughly 1.139 million systems, US
car sales in October will reach a seasonally adjusted 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 eight months, the underlying dynamics of the market remain in
flux.” Pockets of car stock levels continue to enhance
faster than anticipated from extremely low levels and
bring welcome news on the supply side of the formula.
auto 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
stock levels as a major consider stemming immediate-term
momentum in vehicle sales levels, the degrading economic
conditions are becoming more prevalent.” Hindered by greater interest rate settings and lower levels of
jobs growth than previously anticipated, customers are expected to
retrench – consequently ending up being a major input aspect to car need
levels over the next 12-18 months. In its October 2022 US Economics
update, S&P Global Market Intelligence group has actually modified
downward its projection of real GDP development in 2023 from 0.9% to
-0.5%. The base projection now includes a mild economic downturn starting in
the 4th quarter of this year, with an anemic healing taking
hold in the 3rd quarter of next year.If theres a silver lining, the potential for faster new-vehicle
stock development must permit for downward pressure on vehicle
prices and offer some clearance for auto consumers ready to
test the market in 2023.

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

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