September Vehicle Sales Far Above Consensus

Consumer confidence readings have not been lying, at least based on early indications of September vehicle sales. With about 3/4 of the monthly results in, North American-made vehicles are at a 14.4 million annual rate, far above the Econoday consensus for 13.8 million and up from 14.1 million in August. This would be, outside the 14.2 million rate in May, the strongest rate since all the way back in January 2006. This result underscores the two-way economy: domestic-based which is rising and foreign-exposed which is declining.

Recent History Of This Indicator:
Motor vehicle sales have been perhaps the standout indicator so far this year, showing very strong gains that lifted household spending during the summer. Sales in September are expected to ease back to a 17.5 million annual rate from 17.8 million in August. Such a decline would lower expectations for September retail sales but would still point to a healthy consumer.