With the wide US economy finally ready for a successful expansion, economists at the University of Michigan predict sales of new vehicles would top 17 million vehicles in just two years.
According to the university, the overall economy is scheduled to expand by at least 3% in 2015 – the biggest growth in a decade – so auto sales would reach a forecasted delivery rate of 16.6 million in 2015 and 17 million the following year. This is the latest report to signal a positive outlook for the auto industry. The automakers also seem to share the confident opinion of stronger, steady sales over the next couple of years.
“In August, the light vehicle sales pace was the best since January 2006,” says Matthew Hall of U-M Economics Department’s Research Seminar in Quantitative Economics. “The truck sales share has averaged more than 53% so far this year, reflecting the strength of small CUV sales and an influx of new truck and SUV models from domestic manufacturers.”
The U-M economists also point out that gas prices are unlikely to shit their trend towards instability, as the price of crude oil is predicted to hold steady around $79-$80 per barrel through 2016. Adding to that, consumer confidence will get a boost from the consumer price inflation and core inflation, which excludes food and energy costs, with both below the 2% mark through 2016.