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Total vehicle sales fell from 14.6 million annualized units to 13.1 million annualized units in August, with monthly sales levels down 14.4 percent year over year. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the report in a new Macro Data Flash report.

"Vehicle sales are getting crushed by the semiconductor shortage and subsequent lack of production," said Long. "The economy has the momentum and strength to support much higher sales, but there is no supply to meet it.

"J.D. Power reports that dealer inventories are just one-third their pre-pandemic levels," Long added. "The most profitable vehicles are getting the limited supply of chips, which also skews sales toward trucks and SUVs."

Car sales declined this month from 3.4 million annualized units to 3 million annualized units while light truck sales slipped to 10 million annualized units.

Total sales are down 14.4 percent from August 2019 and are at their lowest rate since June 2020. Light truck sales have hit their lowest level since May 2020.

"Production will remain an issue into early 2022, at which point sales will begin to strengthen again," concluded Long.

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