June 23, 2021
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2 local residents injured when vehicle overturns in Ozark County
Provision to decriminalize Metro Transit fare violations fails to make it into transportation bill at Legislature
Americans Are Keeping Their Cars Longer, as Vehicle Age Hits 12 Years
Nissan drops Navara pickup in Europe
Arizona police shoot suspect who struck multiple cyclists with vehicle
Flying Car Makers Want to Build ‘Uber Meets Tesla in the Air’
30 Fayetteville businesses receive bicycle friendly awards
Tesla launches its fastest car, the Model S Plaid
Federal regulators warn of risks to firefighters from electrical vehicle fires
House transportation bill a loser for consumers
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2 local residents injured when vehicle overturns in Ozark County Provision to decriminalize Metro Transit fare violations fails to make it into transportation bill at Legislature Americans Are Keeping Their Cars Longer, as Vehicle Age Hits 12 Years Nissan drops Navara pickup in Europe Arizona police shoot suspect who struck multiple cyclists with vehicle Flying Car Makers Want to Build ‘Uber Meets Tesla in the Air’ 30 Fayetteville businesses receive bicycle friendly awards Tesla launches its fastest car, the Model S Plaid Federal regulators warn of risks to firefighters from electrical vehicle fires House transportation bill a loser for consumers

Motor Vehicle Sales

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Total Vehicle Sales 11.4M
Domestic Vehicle Sales 9.1M

Definition

Unit sales of motor vehicles, published by the Bureau of Economic Analysis at the beginning of each month, include domestic sales and imports. Domestics are sales of autos produced in the U.S., Canada, and Mexico. Imports are U.S. sales of vehicles produced elsewhere. The data track all passenger cars and light trucks up to 14,000 pounds gross weight (including minivans and sport utility vehicles). Though totals include a relatively small portion sold to businesses, motor vehicle sales are good indicators of trends in consumer spending and often are considered a leading indicator at business cycle turning points.

Description

Since motor vehicle sales are an important element of consumer spending, market players watch this closely to get a handle on the direction of the economy. The pattern of consumption spending is one of the foremost influences on stock and bond markets. Strong economic growth translates to healthy corporate profits and higher stock prices. The bond market focus is on whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth. This balance was achieved through much of the nineties. For this reason alone, investors in the stock and bond markets enjoyed huge gains during the bull market of the 1990s.

Retail sales growth did slow down in tandem with the equity market during the 2001 recession but then, boosted by a low interest rate environment, rose sharply through 2007 before falling sharply during the Great Recession. Sales then recovered and, once again boosted by low rates, began a long period of steady and favorable growth.

In a more specific sense, auto and truck sales show market conditions for auto makers and the slew of auto-related companies. These figures can influence particular stock prices and provide insight to investment opportunities in this industry. Given that most consumers borrow money to buy cars or trucks, sales also reflect confidence in current and future economic conditions.

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