Car and truck sales numbers were released Monday, but not everyone saw them in the same light.
The Wall Street Journal story started off with questions about the ability of the market to continue growing, while the Associated Press story was more optimistic.
Here is the top of the WSJ story:
Strong demand for new pickup trucks and sport-utility vehicles boosted U.S. sales in May for major auto makers, but some analysts questioned whether the market’s recovery is starting to level off.
Among auto makers reporting May U.S. sales early Monday, results were mixed—with some companies reporting strong growth from a year ago, and others less dramatic improvements.
Forecasters predict total sales in the U.S. market climbed about 7% in May to 1.42 million light vehicles. Ford officials, in a conference call on Monday, estimated car-sales for the industry were up 9% for the month.
The actual sales total will be available later on Monday after all auto makers have reported their figures.
For the last four years, auto makers have enjoyed a steady recovery in new-car sales, which bottomed out in 2009, when Americans purchased just 10 million cars and light trucks. In 2012, auto sales rose 13% to 14.5 million vehicles.
This year, U.S. light-vehicle sales have continued to surge ahead, thanks to easy credit and an improving housing market that has boosted demand for pickups and lifted home prices, providing a wealth effect to homeowners. In anticipation of another strong year, U.S. car makers at some factories are skipping the traditional summer shutdown to keep cranking out new-car inventory. Ford said it expects to increase its third quarter U.S. production by 10% from a year ago to 740,000.
And now for the Associated Press version (via the New York Times), which is considerably more optimistic:
Price cuts at Nissan and strong demand for pickup trucks helped U.S. auto sales rebound in May after a slight dip in April.
General Motors reported its strongest monthly sales since September of 2008. Chrysler, Ford, and Toyota also reported increases. Nissan Motor Co. notched its highest May sales ever after cutting prices on seven popular models early in the month. Only Volkswagen said sales fell compared with May of last year.
The strong sales are another sign that auto sales will continue to boost the U.S. economy, as consumers replace aging vehicles and businesses invest in trucks as they gain confidence.
Builders are buying pickup trucks at a rapid pace as home construction continues to rebound. Ford Motor Co. said sales of its F-Series pickup — the nation’s best-selling vehicle — hit 71,604, their highest sales since March 2007. Chrysler Group said Ram pickup sales jumped 22 percent from last May to almost 32,000. Chevy Silverado sales rose 25 percent to more than 43,000.
Analysts expected a strong May for the industry after a slightly disappointed April. They forecast a 7 percent increase over May 2012 to around 1.4 million vehicles, putting the industry back on pace for full-year sales of more than 15 million.
The other coverage from Bloomberg and the New York Times blog were fairly straightforward recaps of the numbers for the top automakers. The Bloomberg analyst quote said that the housing market was a driving force behind car and truck sales:
“New home construction remains really the driving force behind growth in the pickup truck market, not to mention the fact that the energy markets have been booming out there,” Alec Gutierrez, an industry analyst for Kelley Blue Book, said in a telephone interview. “It means a ton for the domestic manufacturers. They really dominate the segment.”
It’s obvious that many experts disagree what’s going to happen with the economy and what the current state of auto sales actually forecasts. Maybe it just means that people put off buying new vehicles as long as possible. But maybe it’s a good sign that people are feeling better about their finances. Either way it’s interesting that the business media can see the same numbers so differently.
