Pace of the U.S.A auto sales has probably stalled for 2nd straight month for June as market of labor had stumbled & the confidence had waned, leading the analysts @ Citigroup Inc. & Deutsche Bank AG for lowering the estimates for the demand in the year 2013.
The sales of light-vehicle for June, set for the release soon, might have run @ 13.8 million adjusted seasonally rate annualized, average estimate of around 15 analysts that is surveyed from Bloomberg. This average estimate matches the rate of May, this year’s 1st month for dipping below the mark of 14 million, & trails 14.5 million pace for 1st 4 months of the year 2012. Even with slow down, U.S.A. auto sales are now on the pace for total that is best annual since the year 2007. With the sales for Europe falling 5th straight year & market of China slowing, the auto makers like Ford are now counting on the demand for warranting more of production at North America for offsetting the losses for the other regions.
Emmanuel Rosner, who is New York-based analyst in CLSA – Credit Agricole Securities Inc.’s, said in phone interview that they are talking regarding less strength as compared to what things were one year ago. He says that they are talking of less strength as compared to what the things were one year ago. Macro data which correlates best along with U.S.A. auto sales is the consumer confidence & the employment figures. For both the cases, there is some of deceleration.
Chrysler, Ford, & affiliates Hyundai & Kia probably will be reporting smaller June gains of sales as compared to what they had recorded in this year through the month of May, says the estimates of analysts’. Itay Michaeli from Citigroup & Rod Lache of Deutsche Bank each had cut the industry sales for 2013 estimates by 500,000 cars & light duty trucks in the last month as the U.S.A. gains of job had slowed & the consumer confidence had weakened.
‘Additional head winds’
Michaeli lowered had the outlook for the year 2013 to the 14.5 million sales, from about 15 million. Lache had cut the estimate of 2013 to about 14.2 million, from approx. 14.7 million.
Lache had written that they are seeing a potential for the additional headwinds from crisis of Europe, & head winds from the U.S.A. cuts of federal budget which might take effect in the month of January. Confidence amongst U.S.A. consumers had dropped for 4th month, index of Conference Board’s had showed on June 26. This private research measure of group fell to around 62 for the month of June, and is the lowest since the month of January. Employers had added about 69,000 workers in the month of May, fewest in year, & job less rate had gone to around 8.2 percent.