Report: US auto sales in May at lowest level of the year - Westfair Online

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U.S. auto sales in May are expected to drop to their lowest level of the year, according to the forecast published by Cox Automotive.

The new forecast pointed to a seasonally adjusted annual rate (SAAR) of new-vehicle sales in May of 13.1 million, down from April’s 14.3 million level and a steep decline from the 16.9 million level posted in May 2021. May’s sales volume is expected to finish near 1.14 million units, down 9% from the previous month and a 28% drop from one year ago – new vehicle sales in May 2021 reached 1.59 million, the second-best month of 2021 by volume.

“Historically, the daily sales pace is higher in May than in most other months, with spring optimism in the air, thoughts of summer road trips on the horizon, and the buzz of Memorial Day sales,” said Charlie Chesbrough, senior economist at Cox Automotive. “But many of the industry’s normal patterns have been overturned by tight inventory and the lingering effect of the global pandemic.”

Chesbrough also pointed out that in addition to economic challenges, the low sales volume can also be attributed to the calendar – there are 24 selling days this month, three fewer than last month and two fewer than May 2021.

Photo by Peter Katz