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

On forecasted volume of around 1.139 million systems, United States
vehicle sales in October will reach a seasonally adjusted yearly rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
quotes. While this would mark the strongest regular monthly SAAR level
in eight months, the underlying characteristics of the market remain in
flux.” Pockets of car stock levels continue to improve
quicker than gotten out of extremely low levels and
bring welcome news on the supply side of the equation. Nevertheless,
auto 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 indicate
inventory levels as a major aspect in stemming immediate-term
momentum in automobile 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, customers are expected to
retrench – thus ending up being a significant input element to auto need
levels over the next 12-18 months. In its October 2022 US Economics
update, S&P Global Market Intelligence team has revised
downward its forecast of genuine GDP growth in 2023 from 0.9% to
-0.5%. The base forecast now consists of a mild economic crisis starting in
the fourth quarter of this year, with an anemic recovery taking
hold in the 3rd quarter of next year.If theres a silver lining, the capacity for faster new-vehicle
stock development ought to enable for down pressure on car
prices and offer some clearance for automobile customers ready to
test the market in 2023.