U.S. auto sales stronger than expected in August on trucks, SUVs
By Bernie Woodall
DETROIT (Reuters) - The U.S. auto industry powered ahead in August, topping sales estimates and shrugging off gyrating stock markets as consumers continued to show their penchant for pickup trucks and SUVs.
U.S. auto sales were the strongest in any month since July 2005. The annualized selling rate in August was 17.8 million vehicles, according to Autodata Corp, well above expectations of 17.3 million.
The six largest automakers in the U.S. market all beat the sales forecasts of industry analysts, with Toyota, Honda, Nissan and GM reporting declines that were not as severe as expected.
Roller-coaster stock markets appeared to have no major impact on auto purchases, which each month are an early indicator of consumer spending.
“All of the economic fundamentals that we look at, including job growth, disposable income and fuel prices, are in good shape and that should keep sales strong,” said Kurt McNeil, head of U.S. sales for General Motors Co (GM.N: Quote).
Bill Fay, head of Toyota brand sales in the U.S. market, pointed out that U.S. consumer confidence in August was at its highest since January.
GM, the No. 1 automaker in the U.S. market, reported that sales dropped 0.7 percent.