December 06, 2022

November auto sales dip as supply constraints persist

 TAutootal vehicle sales fell slightly from 15.1 million annualized units in October to 14.1 million annualized units in November, with monthly sales levels up 7.9 percent year-over-year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in a new Macro Data Flash report

"Supply has long been the binding constraint, and inventories and production fell overall in October (data for November is not yet available)," said Long. "Chip shortages continue to bedevil manufacturers, which have responded by prioritizing highest-margin vehicles. 

Car sales also fell slightly last month with 3.1 million annualized units sold. Light truck sales fell from 11.9 million annualized units to 11 million.

Domestic production fell 2.7 percent in October, while inventory also fell to 0.52 months of sales.

"Higher rates may be discouraging some buyers, but survey evidence suggests that the effect is muted,” added Long. “According to the University of Michigan's consumer survey, in October households viewed car buying conditions as being at their highest level all calendar year.

“NAFCU maintains its view that sales will trend upward in the coming months as supply chains heal, but that growth will be choppy and gradual,” concluded Long.

For more up-to-date economic insights from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.