The latest U.S. auto sales data, which was released this week for March, was roundly disappointing. It revealed a 5.5% decline in sales, and was the third consecutive monthly decline. Given the chunky multiplier impact auto production and sales have on the U.S. economy, and as their consumption is a good indicator of consumer confidence, we thought it worth digging a little deeper into this slowdown. Hence, in this week’s Economics Weekly, we examine the recent behavior of auto sales and whether or not this weakness is indicative of an underlying weakness in the consumer’s situation or a harbinger of a more general consumer spending slowdown.
For a copy of this report or to subscribe to the Economics Weekly or Economic Indicators reports, please contact your William Blair representative.
Richard de Chazal, CFA is a London-based macroeconomist covering the U.S. economy and financial markets.