Sales of new motor vehicles are up to a 16.495 million unit seasonally adjusted annual rate in November after an upward revision to 16.253 million units in October. The level is above the consensus of 16.000 million units in the Econoday survey of forecasters. Sales of domestically produced motor vehicles are up to 12.845 million units in November after 12.448 million units in October. Sales of domestically produced motor vehicles are at 78 percent of total sales. Sales likely got a boost in November from the need to replace vehicles lost in the damage associated with Hurricanes Helene and Milton.

Sales of passenger cars are down slightly to 2.956 million units in November after 3.045 million units in October. However, sales of light trucks which includes minivans, SUVs, and crossovers are up to 13.539 million units in November after 13.208 million units in October. Sales of light trucks accounted for 82 percent of all sales, matching the all-time high of 82 percent in June 2024. Consumers continue to exhibit a preference for vehicles in the light truck category regardless of fuel and insurance costs.

Sales of heavy trucks which are usually to businesses are at 507,000 units in November after 463,000 in October. It is probable that some businesses had to replace equipment lost to the hurricanes, but there may be some investment in equipment to upgrade or expand at a time when the US economy continues to grow at a moderate pace. Additionally, if businesses are replacing equipment made by non-domestic manufacturers, they may be acting in anticipation of higher costs due to tariffs.

Increased sales of motor vehicles will probably add to personal consumption expenditures and fixed investment in growth in GDP in the fourth quarter 2024.

Total vehicle sales are seen flat at a 16.0 million unit rate in November from 16.0 million in October.

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.