US November vehicle sales support domestic consumption outlook, leaves Q4 GDP tracking at 2.0%

In US, the November sales of light weight vehicles summed up to 18.12mn annualized units, as per WardsAuto data and BEA seasonal adjustment factors. This was consistent with the consensus expectations of 18.1 mn.

The production of motor vehicles and consumption continues as outstanding goods-producing activity in the country, in contrast to the lower outlook for the rest of the manufacturing sector of US.

Large durable goods sales are healthy and support the overall outlook for US domestic consumption and continues leading the growth. The sales figure indicates less consumption in Q4.

"Our tracking estimate of real PCE growth fell one-tenth, to 2.4%. However, weaker-than-expected sales of domestically manufactured autos imply more inventory growth. Our Q4 GDP tracking estimate remains unchanged at 2.0%", says Barclays in a research note.