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Vehicle sales decline slightly in November; supply chain improvement on the way
Total vehicle sales declined from 13 million annualized units to 12.9 million annualized units in November, with monthly sales levels down 19 percent year over year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the report in a new Macro Data Flash report.
"The auto market is having a difficult time breaking out of its malaise, and sales in November declined slightly from already low levels," said Long. "High gas prices and low inventories are each taking a toll.
"On the supply front, semiconductor production appears to be improving," Long added. "Domestic auto production improved by 41 percent during the month of October, though that only made up for a sharp drop the prior month."
Car sales were flat last month, holding at 2.6 million annualized units, while light truck sales fell from 10.4 million annualized units to 10.3 million.
Domestic production recovered somewhat in October after a steep decline in September. Ward's Automotive reports that inventories are down 82 percent since October 2019.
"The supply chain is the main constraint, though, and improvement is apparently on the way," concluded Long. “NAFCU expects auto sales to improve in early 2022.”
For more up-to-date economic insights from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.