Cars in Neutral

By Econ70 | 06/18/2013

Since hitting a low of 9 million in annualized auto sales in 2/09, strong demand has propelled new-car sales to 15.3 million as of 5/13. However, sales have flat-lined of late and are barely higher than in 1/13. This is in part why manufacturing growth is weakening. Yet automakers are cranking out more cars than…

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Driving Sales

By Econ70 | 04/10/2013

Last week automakers reported sales of 15.3 million, up from a low of 9.0 million in February 2009. The rise is due in part to ultra-low interest rates, but also to both a rapidly aging fleet and longer loan terms. The average age of a car is now 11.2 years, up from 8.4 in 1995,…

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Mixed Data

By Econ70 | 03/19/2012

Recent economic data are mixed. On one hand, the job market is doing well, bank lending is rising, and car sales are zooming. But, gasoline prices are up, real after-tax incomes are almost flat — causing consumer spending to grow a tiny inflation-adjusted 0.6% between 7/11 and 1/12 — and GDP growth is tepid. Either…

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