Auto Sales UP!
Apr 14th, 2008 by gmoran
Or are they? The Commerce Department’s March Retail Sales Report, released this morning, indicate a 0.2 percent rise in vehicle and auto parts during March. However, General Motors, Ford and Chrysler all reported double digit plunges in March sales compared with March 07. These numbers get tricky depending on what numbers are included and what they are being compared to. But 0.2% up is better than down to a beleaguered industry. The headline number for US retail sales rebounded 0.2 after prior declines. Ex autos, the core rate was 0.1%. The report showed strong increases in food and gasoline prices which is not good news. Wall Street didn’t exactly see a bull run. But will the positive auto figures prove to be a precursor to better things for the auto industry? We’ll see. The Federal Reserve meets again on April 30 and a 50 basis point decrease to 1.75% is expected. Lower interest rates help auto sales – if you can find someone who will lend you the money!