I assume Feb, especially in a leap year is tricky. And, I may be willing to concede that unseasonably warm weather is a factor – though I am deeply adverse to this type of ad hocery, as it is ripe for confirmation bias.
All that having been said, autosales smashed even my best guesses. I had stopped trying to give month-to-month but the last time I looked carefully I was thinking we would hit about 14.5 Million SAAR sometime early to the middle of this year.
Feb came in at 15.2 Million SAAR. You can see the strong discontinuity in Bill McBrides chart

At this rate the vehicle stock in America is now growing and may be close to growing in per capita terms.
If this is not an outlier – and of course that remains to be seen – then that would suggest we have broken through the liquidity trap and the process of convergence to the long run growth path has begun.

4 comments
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Thursday ~ March 1st, 2012 at 8:37 pm
rjs
recommend you check out the 3 part series “Has America Lost its Drive?” by jazzbumpa at angrybear, linked here:
http://feedproxy.google.com/~r/blogspot/Hzoh/~3/y0aUb6LjSwM/is-america-losing-its-drive-pt-3.html
Thursday ~ March 1st, 2012 at 11:03 pm
JazzBumpa
rjs -
Thanks for the plug. I took a guess there that the market was close to saturation. This may be correct, according to this study that Roger Chittum suggested to me. I haven’t read it in detail yet, but it suggests a saturated U.S. market right around 850 vehicles/ 1000 population. We peaked in 2007 at 843.57. The number slipped to 828 in 2009, so there is some upside room.
It was published in 2007, pre-crash, and has data through 2002.
http://www.econ.nyu.edu/dept/courses/gately/DGS_Vehicle%20Ownership_2007.pdf
And it was Karl who got me thinking about this in the first place.
http://modeledbehavior.com/2012/02/16/oil-and-the-structural-recession/
Cheers!
JzB
Friday ~ March 2nd, 2012 at 4:17 am
FT Alphaville » Further reading
[...] – Keep on trucking. [...]
Sunday ~ December 2nd, 2012 at 11:47 am
Zachary Nanke
Car sales is sometimes hard since you really need to sell some expensive cars. ;
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