Moderate U.S. vehicle sales growth suggests stronger consumption growth in early Q1

US light weight vehicle sales for January reached 17.46mn units, according to WardsAuto data and BEA seasonal adjustment factors. The print was moderately more than Barclays' forecast of 17.1mn and consensus expectations of 17.3mn.

Sales grew 1.4% m/m in January, with moderate rise in autos of 0.9% m/m and in light trucks of 1.8% m/m. The January's report should suppress worries that vehicle sales stated declining in December. The vehicle sales data for January implies that real durable goods consumption rose at a higher rate at the beginning of Q1.

"We look for a further rebound in consumer spending growth over the next few months, which we expect will drive overall Q1 GDP growth of 2.5%", says Barclays.