S&P Global Mobility predicts strong monthly SAAR for October

S&P Global Mobility predicts strong monthly SAAR for October

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

On projected volume of around 1.139 million units, US
auto sales in October will reach a seasonally changed yearly rate
( SAAR) of 14.7 million units, according to S&P Global Mobility
price quotes. While this would mark the greatest regular monthly SAAR level
in eight months, the underlying dynamics of the market stay in
flux.” Pockets of vehicle inventory levels continue to enhance
quicker than anticipated from extraordinarily low levels and
bring welcome news on the supply side of the equation.
auto customers are most likely feeling the pressure of current economic
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to point to
inventory levels as a significant consider stemming immediate-term
momentum in auto sales levels, the degrading financial
conditions are becoming more widespread.” Hindered by higher rates of interest settings and lower levels of
tasks development than previously expected, customers are expected to
retrench – therefore becoming a major input aspect 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 projection of genuine GDP growth in 2023 from 0.9% to
-0.5%. The base forecast now consists of a moderate economic crisis beginning in
the 4th quarter of this year, with an anemic recovery taking
hold in the 3rd quarter of next year.If theres a silver lining, the potential for faster new-vehicle
stock development need to permit down pressure on automobile
prices and supply some clearance for car customers ready to
test the market in 2023.

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