Sales of motor vehicles in February increase to a seasonally adjusted annual rate of 15.999 million units after 15.498 million in January. The number of units sold is near the consensus of 15.9 million units in the Econoday survey of forecasters. Sales of domestically produced motor vehicles are up to 12.231 million units in February from 11.584 million units in January. Domestically produced motor vehicles accounted for 76 percent of all units sold.

Passenger car sales are up slightly to 2.954 million units in February from 2.829 million units in January. Light truck sales which include minivans, SUVs, and crossovers are up to 13.045 million units in February from 12.668 million units in the prior month. Light truck sales continue to dominate the market with an 82 percent share of total sales, maintaining the record high for the fourth month in a row.

Sales of heavy trucks typically as business equipment are down to 460,000 in February from 491,000 in January. Elevated uncertainty about the economy and interest rates still higher than expected are probably making businesses hesitate before making some expenditures.

Sales expected to improve to a 15.9 million unit rate from 15.6 million in January.

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.