Creating a mood of optimism among auto industry executives, sales for vehicles rose to a five-year high-point for the month of November. Sales improved due to the aftermath of Hurricane Sandy which stimulated the purchase of new cars after many cars were destroyed in the storm, as well as consumers replacing ageing cars in a mood of optimism about the economy.
November’s sales rose by an exuberant 15 percent, selling 1.14 million vehicles, the highest sales figure for November since 2007, the last November before the recession wreaked havoc on the auto industry. The poor economy and crisis of 2008 led to a bottoming-out of demand for new cars and the eventual bankruptcy of Chrysler and General Motors.
“Vehicle sales are one of the encouraging spots of our economy,” said Gary Bradshaw, portfolio manager with Hodges Capital Management in Dallas.
Car sales help analysts predict the state of the economy as it’s an early indicator every month of US consumer confidence. Combined with the improved housing market auto industry executives are hopeful about the year to come, 2013.
“Looking at the national picture, the apparent recovery in housing that we talked about last month and the encouraging new data on consumer sentiment and confidence are all positive factors,” Kurt McNeil, GM’s vice president of U.S. sales operations, said.