ARLINGTON, Va.—Although total vehicle sales fell from November's rate of 17.1 million annualized units to 16.7 million annualized units in December – and were down 3.9% from a year ago – NAFCU Chief Economist and Vice President of Research Curt Long noted that the "auto market has remained remarkably stable since 2015."
“That steadiness is a testament to a strong labor market and solid household balance sheets,” Long said. “Sales in 2019 did slip slightly below the 17-million unit mark for the first time since 2014; slower light truck sales drove the decline while autos saw a small increase in sales.”
The recent rise in gas prices may have affected truck and SUV sales in December, Long noted, and growing tensions in the Middle East represent increased risks along those lines. Nevertheless, Long said NAFCU expects auto sales "to remain stable throughout 2020 due to a strong labor market and solid household balance sheets."
Car sales rose 1.4% to 4.5 million annualized unites during the month; sales of light trucks decreased 3.6% to 12.2 million annualized units.