ARLINGTON, Va.—Total vehicle sales rose in September to a rate of 17.4 million annualized units, breaking a two-month decline.
NAFCU Research Assistant Yun Cohen noted that sales surged to the highest level since November 2017, but were down 4.1% from a year ago as a result of weather disruptions.
"According to J.D. Power, sales in the Carolinas were down 12% in the first three weeks of September due to Hurricane Florence," Cohen said in a NAFCU Macro Data Flash report. "Conversely, last September's sales were boosted by replacement demand caused by Hurricane Harvey. Despite the storm, last month's sales were strong and put the third quarter average to a solid 17 million annualized units."
Sales of light trucks increased from 11.6 million to 12 million annualized units during the month; car sales also increased from 5.1 million to 5.4 million annualized units.
Just 1 Company Hits the Gas
Fiat Chrysler Automobiles was the only company to report an increase in September sales from the previous year (+14.7%), while Nissan (-12.2%), Ford (-11.2%), Toyota (-10.4%) and Honda (-7%) all reported declines. General Motors, which only releases quarterly sales, reported an 11% decline in the third quarter compared to last year.
Looking ahead, "replacement purchases in the Carolinas should support sales in the fourth quarter," Cohen said. She added that auto-related tariff threats would likely be offset by the new trade agreement between the U.S., Mexico and Canada.
"More broadly, though, vehicle sales are still expected to trend down gradually due to multiple headwinds including waning demand and higher borrowing costs," Cohen concluded.