Sales of motor vehicles are down to a 15.0 million unit seasonally adjusted annual pace in August after an unrevised 15.7 million units in July. The pace is below the consensus of 15.6 million units in the Econoday survey of forecaster. The decrease is mainly due to slower sales in the light truck category, although sales of passenger vehicles are down as well. Sales of domestically produced motor vehicles are down to 11.6 million units after a revised 12.4 million units in July. Total sales of foreign produced motor vehicles are up slightly to 3.411 million units in August after 3.389 million units in July.

Total passenger cars sales are down to 3.047 million units in August from 3.145 million units in July. Total light truck sales which include minivans, SUVs, and crossovers are down to 11.988 million units from 12.603 million in the prior month. Sales of light trucks continue to dominate the motor vehicle market despite higher fuels costs. Light truck sales accounted for 80 percent of total sales and have since the star of the year.

Sales of heavy trucks are down to 512,000 in August after 522,000 in July. This category is down for the third month in a row and suggests a slowing pace of investment in equipment for the third quarter 2023.

Unit vehicle sales in August are expected to edge higher to a 15.6 million annual rate from 15.7 million in the prior two months.

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.

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.