US Auto Sales Indicate Slowdown Amid Economic Challenges

U.S. light vehicle sales are projected to stay strong in August, although early indicators suggest a possible slowdown, according to S&P Global Mobility.

Chris Hopson, a principal analyst at S&P Global Mobility, noted that “rising interest rates, credit tightening, and new vehicle pricing levels slowly decelerating remain pressure points for consumers.”

The report estimates that new light vehicle sales in August will reach approximately 1.34 million units, marking an 18% increase compared to the previous year. However, the automotive research firm has revised its annual forecast down to 15.2 million units, a decrease from the 15.7 million units projected in July.

Additionally, supply chain disruptions in North America could occur due to heightened labor union negotiations.

Joe Langley, associate director at S&P Global Mobility, highlighted that “the greatest threat to the forecast in the near-term surrounds the union negotiations between the United Auto Workers in the U.S. and Unifor in Canada, with their respective contracts set to expire in mid-September 2023.”

UAW announced that its members have overwhelmingly voted in favor of authorizing a strike at the “Detroit Three” automakers if a new agreement is not reached before the current contract expires on September 14.