US vehicle sales steady at decade-high in November

Sales of light weight vehicles totaled 18.12mn annualized units in November, according to data from WardsAuto and BEA seasonal adjustment factors. This was modestly below the forecast (18.3mn) and in line with consensus expectations (18.1mn). Auto sales declined 2.4% m/m, to 7.58mn (saar), and light truck sales rose 1.8% m/m, to 10.55mn (saar). 

Motor vehicle production and consumption continues to stand out as the bright spot of goods-producing activity in the US, in stark contrast to the tepid outlook for the rest of the US manufacturing sector. Healthy sales of large durable goods support the outlook for domestic consumption to continue driving overall US growth.

"Weaker-than-expected sales suggest a bit 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%", notes Barclays.