US: Vehicle sales to come in at 16.9m saar in July - Nomura

Analysts at Nomura expect US vehicle sales to come in at 16.9m saar in July against the consensus of 16.8m.

Key Quotes

“Total light-vehicle sales fell to 16.4m units saar in June and finished Q2 with a disappointing tone. Sales slowed to an average pace of annualized 16.6m units in Q2, down 3.2% q-o-q from the Q1 average. Consumer demand for light vehicles has slowed as lending standards of auto loans tightened in previous quarters. Reflecting weaker consumer demand, retail passenger car sales have slowed recently to the current pace of 5.7m units saar, down 4.6% from May.”

“Although strong job markets appear favorable for underlying demand, continued pressure from lower used car prices and tighter consumer auto loan lending standards may have weighed on sales in July. Considering industry data, we expect vehicle sales to come in at 16.9m saar in July (Consensus: 16.8m), which is a slight acceleration from the pace in June but still below the 2016 average (17.5m units).”