ARLINGTON, Va.—Total vehicle sales increased to a rate of 17.4 million annualized units in May, rebounding from April's decline likely as a result of falling gas prices, said NAFCU Research Assistant Dhruv Singh.
"According to the U.S. Energy Information Administration's most recent forecast, OPEC has been successful in capping production, which will limit how much further prices will fall," Singh explained in a NAFCU Macro Data Flash report. "Tariffs on Mexican imports threaten to upset production and represent a downside risk.
"The bigger concern is that sagging financial markets will dent consumer confidence. The strong jobs market is buttressing many parts of the economy, including vehicle sales," continued Singh.
Car sales increased from 4.9 million annualized units to five million annualized units during the month. Meanwhile, sales of light trucks jumped from 11.5 million annualized units to 12.4 million annualized units.