S&P Global Mobility predicts strong monthly SAAR for October

S&P Global Mobility predicts strong monthly SAAR for October

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

On predicted volume of roughly 1.139 million systems, US
automobile sales in October will reach a seasonally adjusted annual rate
( SAAR) of 14.7 million systems, according to S&P Global Mobility
quotes. While this would mark the greatest month-to-month SAAR level
in eight months, the underlying dynamics of the market stay in
flux.” Pockets of lorry stock levels continue to improve
quicker than anticipated from extraordinarily low levels and
bring welcome news on the supply side of the equation.
car customers are 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
inventory levels as a major factor in stemming immediate-term
momentum in vehicle sales levels, the deteriorating financial
conditions are ending up being more prevalent.” Hindered by greater rates of interest settings and lower levels of
jobs development than previously anticipated, consumers are expected to
retrench – thus becoming a significant input factor to car demand
levels over the next 12-18 months. In its October 2022 US Economics
update, S&P Global Market Intelligence group has modified
downward its projection of real GDP growth in 2023 from 0.9% to
-0.5%. The base projection now includes a mild economic crisis starting in
the 4th quarter of this year, with an anemic healing taking
hold in the third quarter of next year.If theres a silver lining, the potential for faster new-vehicle
inventory development need to enable down pressure on lorry
rates and supply some clearance for vehicle customers going to
test the market in 2023.

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