Research firms Kelley Blue Book and Edmunds.com said that new-car sales in the U.S. are set to increase nearly 30% in May. This would be its widest jump in more than a year. Kelley Blue Book said that the anticipated sales of 1,378,000 vehicles in May would mean a selling rate of 14.2 million vehicles annually to match January for the lowest pace this year.
But this would be the fifth straight month that would have a pace of higher than 14 million. In a statement, Kelley Blue Book senior analyst Alec Gutierrez said that in a typical post-recession recovery, the company would expect auto sector gains to be pushed by “broad economic growth."
He said that “the opposite was true” in the first quarter as auto sales had been the “primary driver” for the GDP growth. Auto sales have also been a “bright spot” amid a slow recovery.
Gutierrez added during this interview set in Detroit that it would almost be like “the tail is wagging the dog." Edmunds’ prediction was similar. Its industry analyst Jessica Caldwell said that overall, the figures in May appear strong. She said that for this month, the “big driver” will still be the “pent-up” demand.
She explained that if these potential buyers enter the market, its sales will be maintained “at a reasonable level.” The auto sales in the U.S. are on track to result to its best showing since 2007.
This year, sales may go up to 14.3 million cars and light trucks, according to estimates from 14 analysts that Bloomberg surveyed. This would be its best full year since 16.1 million in 2007. Last week, Edmunds estimated that there would be 14.4 million in full year sales. Last April, the industry reported a 2% increase to 1.18 million, according to the Automotive News data center. Last month, the industry’s seasonally adjusted annual rate (SAAR) was 14.4 million.