Sales of motor vehicles are down to a 15.1 million unit seasonally adjusted annual rate in August after 15.8 million units in July. The pace is somewhat below the consensus of 15.4 million units in the Econoday survey of forecasters. Sales of North American produced motor vehicles are down to 11.5 million units in August from 12.0 million units in July. Motor vehicles produced in North America accounted for 76 percent of all units sold.

Sales of passenger cars are down to 2.868 million units in August from 2.989 million units in July. Sales of light trucks which include SUVs, minivans, and crossovers are down to 12.263 million units in August from 12.855 million units in the prior month. Sales in the light trucks category continue to dominate the market with 81 percent of all sales and remain just below the historical peak of 82 percent of sales in June 2024.

Sales of heavy trucks slipped to 509,000 units in August after a sharp increase to 523,000 in July. Businesses continue to invest in equipment in the third quarter to replace aging units, upgrade current equipment, and/or expand capacity.

Unit vehicle sales in August are expected to fall to a 15.4 million annualized rate from July's 15.8 million rate that compared with 15.2 million in June.

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.