US: August auto sales power on against all expectations image

China’s falling economy and stock market rout has shaken up Wall Street and the calendar decided a strong holiday sales weekend to be deported to into September, but the auto sales remained relentless in August.

The US auto industry, the second largest in the world and the first in terms of premium sales, posted better than anticipated results last month, though it did slide a little against record deliveries in August 2014. Industry observers forecasted all major carmakers would come with negative results and the overall tally was projected to slip a 3.3 percent monthly slide in sales of cars and light trucks to around 1.53 million units after having just 26 selling days last month, one fewer than during the same period last year. But sales only receded 0.5 percent to 1.58 million vehicles, taking the seasonally adjusted annualized selling rate (SAAR) to estimates jumping from the expected 17.3 to the actual rate of 17.8 million autos.

For the first time since 2012, the Labor Day weekend sales will be tallied in September, according to JD Power, with the holiday falling on September 7 after last year it was on September 1. Consumers usually use the holiday sales practiced by dealers on the traditional Labor Day holiday signaling the end of the summer as they search for new designs or heavy discounts on predecessor model years. Last year, according to JD Power, the Labor Day sales made up around 20 percent of the month’s sales, taking August to its highest level since 2003. But with unemployment sliding, cheap interest rates and dropping fuel prices, the calendar mishap and international woes have not dampened the strong demand for new vehicles that is expected to lift 2015 sales to the best level in more than a decade.

Via Bloomberg