IHS Automotive improves 2014 US sales forecast image

Thanks to increased consumer confidence, improved economy and affordable financing, US auto sales have grown steadily over the course of 2014, leading to more bullish predictions for the full year from analysts.

Now, according to well-known consulting firm IHS Automotive, the overall deliveries across the auto market have grown faster than previously predicted, leading the firm to boost its forecast to 16.4 million units for 2014 and a further rise to 17.4 million in 2017.

“The recovery’s positive spirit leads to people making big-ticket purchases, whereas they had been hesitant in the past,” said Henner Lehne, IHS senior director of global light-vehicle forecasting. “The housing market is improving, there’s a good business climate and you have credit availability.”

IHS previously predicted overall passenger and truck sales in the US would reach 16.25 million units, and the boost to 16.4 million vehicles would mean the sales could reach their highest pace since 2006. For comparison purposes, 2013’s total was of 15.6 million cars and light trucks.

The sales climb was buoyed by the resurgence of lower interest rates and other financial aids, fuel prices remaining at moderate level and the addition of many new models by automakers. Many of them also have been equipped with the latest technology available, both for fuel saving and internet-connectivity inside the cabin.

Via Bloomberg