If economy is so bad, why are auto sales moving up?

VehicleSalesOct2010.jpg Here's another sign that consumer confidence might not be quite as bad as some of the surveys would have you believe. Automakers sold new cars and trucks in October at a faster pace than any time since the cash-for-clunker program more than a year ago. The seasonally-adjusted rate (the number of cars that would be sold if the October pace held up all year) was 12.26 million, which is up almost 18 percent from a year earlier and 4.7 percent from the previous month. As you can see from the Calculated Risk chart, it's not a huge rebound (and well short of the pre-recession highs of 16 million-plus), but that last few months have been trending up. From the WSJ:

In Van Wert, Ohio, auto dealer Andy Czajkowski said shoppers seem to be more willing to opening up their wallets. "If they are employed with a full-time job, then they are feeling good and they are buying," said Mr. Czajkowski, owner of Statewide Ford Lincoln Mercury. "We had a good September and an average October since we are still struggling with unemployment here. I think the rest of the year will be positive."

So what's the deal? Are folks saying one thing in the surveys and doing something else at the auto malls?


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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