Econoday Report: Motor Vehicle Sales November 3, 2009

2009 Economic Calendar

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Motor Vehicle Sales

Released on 11/3/2009 For Oct, 2009

	Prior	Consensus	Consensus Range	Actual
Domestic Vehicle Sales	6.7 M	7.3 M	6.7 M to 7.6 M	7.9 M

Highlights
Consumers were out buying vehicles in October, at a 7.9 million annual unit rate for domestic-made models that's nearly 20 percent better than September's rate. The gain looks to add perhaps $5 billion, or roughly 1-1/2 percentage points, to October's retail sales comparison with September. What's most impressive about the results is that consumers, despite the weak jobs market and despite low spirits, didn't need cash-for-clunker rebates to commit to new vehicle purchases. Chain-store reports on Thursday will add the next piece to the retail sales puzzle.

Market Consensus Before Announcement
Sales of domestic light motor vehicles fell a whopping 33.8 percent in September to an annualized a 6.62 million annual rate compared to August's stimulus-boosted 10.00 million. Combined domestic and import makes of cars and light trucks dropped to an annualized 9.22 million units from 14.09 million in August.

Definition
Unit sales of domestically produced cars and light duty trucks (including sport utility vehicles and mini-vans). Individual manufacturers report usually report sales on the first business day of the month. Motor vehicle sales are good indicators of trends in consumer spending. Why Investors Care

Motor vehicles sales slowed notably in 2006 as a result of higher interest rates and a jump in gasoline prices but remained at reasonable levels due to strong income growth. Late in 2006 and in early 2007, gasoline prices were down from 2006 highs but moderating economic growth kept sales from rebounding. Truck shares hit their peak in 2005 when gasoline was cheap and remain sharply lower since gasoline prices spiked in 2006.

Data Source: Haver Analytics

2009 Release Schedule

Released On: 1/5 2/3 3/3 4/1 5/1 6/2 7/1 8/3 9/1 10/1 11/3 12/1

Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

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