Rising demand for automobiles – relatively expensive durable goods – is an indication of increasing consumer confidence with their future financial prospects. With that in mind, the May auto-sales data should be comforting as it was the fastest rate since February 2007. The numbers came at 16.8 million SAAR (seasonally adjusted annual rate) units, better than the forecast of 16.1 million units.
All auto makers reported good sales. Chrysler topped the American auto-manufactures with 17% increase. Mitsubishi topped the list with 54.2% increase and Mazda was at 22.5%, but Volkswagen lost 15.4%.
After bottoming in 2009 following the financial crisis, the auto sales are rebounding to the pre-crisis levels.