US Auto Sales in June Might Reach Pre-Recession Level Thanks to Demand for Pickups image

Analysts predict that auto sales in the US in June will increase 8%, reaching the strongest pace since 2009, before the recession.

US auto sales in May increased more than analysts’ predictions as demand for pickups was sigh among the oil drillers and construction workers, which had to buy more vehicles to meet increasing demand for their services. Automakers expect high demand for pickups to continue the rest of the year. analysts predict that sales in June will be between 15.5 million units and 15.7 million units, which would be the highest level since 2007.

“We think housing is a driver, but also domestic energy production and also the general economic health of states like Texas, which is a big pickup truck state,” said Barclays analyst Brian Johnson, who expects an annual sales rate in June of 15.6 million vehicles.

Doug Scott, marketing manager for Ford’s top-selling F-150 truck, said that he expects sales to surpass 2 million units for the first time since 2007, thanks to such a high demand for big pickups. The housing revival, as well as stable gas prices, have also contributed to this pickup sales increase.

“It’s actually quite exciting when you think about where sales could go in a few years if the housing cycle continues to grind higher, improving employment levels,” Jefferies analyst Peter Nesvold said.

Source: Reuters