ARLINGTON, Va.—Total vehicle sales increased to a rate of 17.5 million annualized units in March. While March's numbers surpassed expectations, overall growth remained lackluster, according to NAFCU Chief Economist and Vice President of Research Curt Long.
"Automobile sales bounced back in March after two down months," Long said in a NAFCU Macro Data Flash report. "Sales to start the year were impacted by icy weather and the government shutdown. While the rebound in March surpassed expectations, it was still not enough to raise the three-month average above 17 million units. Sales have surpassed that mark every year since 2015, but the prospects of continuing that streak in 2019 are doubtful."
Car sales increased from five million annualized units to 5.2 million annualized units during the month. Meanwhile, sales of light trucks rose from 11.6 million annualized units to 12.2 million annualized units.
Auto Loan Applications
According to recent survey data from the Federal Reserve Bank of New York, 12.4% of households applied for a car loan within the past 12 months, down from 16.8% a year prior.
Long also noted that vehicle sales growth depended on labor market performance.
"Sales will remain solid as long as the labor market is strong, but NAFCU expects mild year-over-year sales declines to be the norm in 2019," Long added.