Fed's rate hike may hit auto market next year

Auto sales for November in the U.S. came in line with October's result as the seasonally-adjusted annualized rate stood at 18.13 million units. The auto market in the country is performing better. 

Of the top-selling brands, Hyundai's selling increaded to 12% y/y, whereas, other brands like FCA, GM, Kia, Nissan and Toyota's selling remained in the range of  1-4% y/y.

"We expect the Federal Reserve to begin hiking interest rates at its next meeting in December, which could take some of the steam out of the auto market next year.  This suggests that the current sales pace of over 18 million may not be sustainable. That said, rate increases are likely to be slow and gradual, and continue to support an elevated level of sales", says TD Economics.