S&P Cuts U.S. Auto Sales View on Slowing Demand, Brexit Effect

[Purveyor]

Source: Bloomberg

S&P Global Ratings cut its estimate for U.S. auto sales this year to 17.5 million vehicles from 17.8 million, citing slowing demand from individual buyers and the effect on the nation’s economy from U.K. voters’ decision to leave the European Union.

The revision comes as deliveries last month were at a seasonally adjusted annual rate of 16.6 million, Nishit Madlani, an S&P credit analyst, said in a statement Wednesday. He also said there has been “softness in used car prices.” S&P trimmed its estimate for growth this year in the U.S. economy to 2 percent from 2.3 percent.

“In our view, the growth rate of U.S. auto sales will likely slow for the remainder of this year and into 2017,” S&P said.

S&P’s reduced outlook reflects increased pessimism that U.S. deliveries this year will beat 2015’s record 17.5 million cars and light trucks. The average estimate from analysts surveyed by Bloomberg last month was for a 2016 total below 17.7 million, down from a 17.8 million consensus in January. The sentiment that sales may already have peaked has contributed to falling stock prices for Ford Motor Co. and General Motors Co. even as they reported record profits.


Read more: http://www.bloomberg.com/news/articles/2016-07-06/s-p-cuts-u-s-auto-sales-view-on-slowing-demand-brexit-effect

[chapdrum]

1. Auto dealers (and

realtors) live in their own, self-created universe.

No tears for the auto industry.

[Purveyor]

2. Yes. It is much better to have all of these autoworkers laidoff

and on the gov't dole, standing neatly in line for their handouts.

[Person 2713]

5. +1 Really wtf ? Good reply thanks

[chapdrum]

6. This is the standard retort, but

sorry, it no longer holds water.

Automakers could revamp/retool so that they produce only electric vehicles, and cop to what they've been avoiding (especially by cheating on emissions tests).

They could if they so chose.

One of the helpful acts that the dreaded government could do is subsidize the retraining of auto (and oil industry) workers (again, if it so chose).

Cars (esp. the fossil-fueled) are, as we now know, antithetical to the environment upon which we depend for our literal lives.

[Wellstone ruled]

3. You just have to love these

articles. Let's see here,2.3 to 2.0 estimates yup. July 1 st,okay,start of the Auto Manufacturing Turn around season,listened to this on the Bloomie today,the presenter seemed to pushing a personal agenda which is nothing new know days. Reason used sales are soft is the Air Bag issue,to many cars with defective airbags on these lots.

And yes,Britain is in a world of hurt and any sales are supect.

[Jack from Charlotte]

4. So last year there were record sales of......

17.5 million units. This year the previous estimate was for a new record of 17.8 million units but the new estimate has been reduced to 17.5 million.

Another way of stating that is...."Another year of record auto sales is forecast."