Steel Markets
U.S. Auto Sales Strong in July, But Down 2% in First Half
Written by Sandy Williams
August 2, 2019
U.S. auto sales appeared to do well in July despite some cooling of the market. Toyota, Honda, Subaru and Hyundai all posted gains for the month. Although Ford, General Motors and FCA no longer report monthly data, analysts suggest that the Big Three also saw sales increase in July.
Cox Automotive said the auto market remained strong last month. “July sales are coming in near where we expected – a slightly slower pace than the YTD average,” said Charlie Chesbrough, Cox senior economist. “Clearly, the market remains on solid ground and buyers are still in the new-car market even with higher prices. Strong sales of some small cars may suggest that affordability shoppers have not entirely abandoned the new-vehicle market. Given the strength of used-vehicle prices, and supply constraints limiting selection, more interest in lower priced new vehicles is not surprising.
“Our full-year forecast for the new-vehicle market in the U.S. remains at 16.8 million,” said Chesbrough. “July’s results will not alter the outlook. And while the Fed’s interest rate cut yesterday will help contain borrowing costs, we do not think the impact on car sales will be much, and not for a while.”
Kelly Blue Book estimates the average transaction price for a new vehicle in July was $37,169, down 0.8 percent from June but up 3.5 percent from a year ago.
“While July is expected to come in below a 17-million SAAR pace, the industry average transaction price continued its steady rise, up 3 percent year-over-year,” said Tim Fleming, analyst for Kelley Blue Book. “Trucks were the big story in July as new mid-size and full-size offerings helped to drive truck prices up about 3 percent while contributing to sales growth in this down market. With the new 1500 trucks from RAM and GM that came out last year, full-size truck prices have now eclipsed the $50,000 mark, and new heavy-duty trucks from these manufacturers this year will push those numbers up even more.”
IHS Markit estimates new vehicle sales fell by 1.9 percent to 2.2 percent in the first six months of the year.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]
HVAC equipment shipments slow in December but strong annually
Shipments of heating and cooling equipment in the US fell to an 11-month low in December, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).