This short article was released 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 roughly 1.139 million units, US
automobile sales in October will reach a seasonally adjusted annual rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
quotes. While this would mark the strongest monthly SAAR level
in 8 months, the underlying dynamics of the market remain in
flux.” Pockets of car inventory levels continue to enhance
more quickly than gotten out of extremely low levels and
bring welcome news on the supply side of the formula. Nevertheless,
vehicle customers are likely feeling the pressure of present financial
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to point to
inventory levels as a major aspect in stemming immediate-term
momentum in vehicle sales levels, the degrading financial
conditions are ending up being more widespread.” Hindered by higher interest rate settings and lower levels of
tasks development than previously prepared for, consumers are expected to
retrench – thereby ending up being a major input factor to vehicle need
levels over the next 12-18 months. In its October 2022 US Economics
update, S&P Global Market Intelligence team has actually revised
downward its projection of real GDP development in 2023 from 0.9% to
-0.5%. The base projection now consists of a mild economic downturn starting in
the fourth quarter of this year, with an anemic recovery taking
keep in the third quarter of next year.If theres a silver lining, the capacity for faster new-vehicle
inventory growth ought to enable down pressure on car
prices and offer some clearance for auto customers prepared to
test the market in 2023.