Sales of new motor vehicles slow to a seasonally adjusted annual pace of 17.3 million units in April from 17.8 million units in March. The April rate is well above the consensus of 16.8 in the Econoday survey of forecasters. Sales of domestically produced are down to 13.1 million units in April from 17.8 million units in March. Sales of domestically produced vehicles account for 76 percent of all sales. Despite the slight decline, sales remain quite strong in April.

It appears that consumers are still buying motor vehicles in advance of tariffs raising prices. Tariffs would lift prices for imported finished vehicles as well as increasing costs for domestic manufacturers on critical parts like semiconductors. Some manufacturers may taking advantage of the situation to clear out existing inventories by using incentives in advance of the next model year and/or to avoid unwanted inventory sticking around when the current demand ends.

Sales of passenger cars are down to 2.887 million units in April from 3.165 million units in March. Sales of light trucks which includes SUVs, minivans, and crossovers are down to 14.386 million units after 14.667 million units in March. The share of sales going to the light truck category reach a record high of 83 percent in April. This category tends to the higher end of prices and consumers may be particularly anxious to secure a unit a current prices.

Sales of heavy trucks are up to 505,000 in April from 450,000 and are the highest since 517,000 in July 2024. Businesses may also be feeling the need to invest in equipment before prices go up and/or in anticipation of possible supply chain disruptions.

Sales got a lift from consumers frontrunning tariffs at a 17.8 million unit annual rate in March. For April, forecasters see a16.8 million rate.

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.