July Auto Sales

By Spencer,

July auto and light truck sales are being reported at 11.2 million annual rate.

That is a very significant increase from the second quarter average of 9.5 million and implies that consumption in the third quarter GDP data will be up significantly.

I do not have detailed data of how much of this is due to “Cash for Clunkers”.

But the point that people are willing to take on a new set of car payments is a good sign for consumer confidence and spending.