US Auto Sales for October Seen Up 11% image

US auto sales for October are expected to increase 11%, due to Honda and Toyota which saw their compact cars sell very well.

Analysts predict the annual sales rate to be 14.9 million vehicles for last month, marking the best October since 2007, the year when the US fell into recession. Automakers are expected to report their October US sales today, November 1st.

“This stability at a higher level is taking the edge off the risk factors for the remainder of 2012 and into 2013, as the U.S. economy wrestles with the European crisis,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive.

Last month the showroom saw more customers for various reasons: the attractive financing options for new vehicles, the rising gasoline prices or the need to replace their aging cars. Although Hurricane Sandy, which hit the US East Coast on Monday night, cut about 100,000 car sales, automakers expect demand to come back in November.

Even if the US auto industry took some blows over the past 5 years, with plant closures, job cuts and the bankruptcy restructuring for GM and Chrysler, the 11% increase in October shows that the country continue to steadily recover.