US vehicle sales beat expectations at 17.5mn units in July

US sales of light weight vehicles totaled 17.5mn units (seasonally adjusted annual rate) in July, according to manufacturers' sales reported via WardsAuto and seasonal adjustment factors provided by the BEA. The July sales print outstripped the consensus expectations of 17.2mn units sales and represents a strong 3% m/m gain for sales of cars and light trucks. Auto sales rose 2.6% m/m, to 7.6mn units (saar), and light truck sales were up 3.3%, to 9.8mn units (saar). 

"We view vehicle sales' continued outperformance as sending a strong signal about the underlying health of the consumer," notes Barclays. 

Households generally make significant purchases of durable goods when consumers are comfortable with their income and employment prospects; unit sales above 17.0mn reflect the solid cyclical position of the US consumer. The BEA also revised its seasonal adjustment factors following this morning's personal income and spending report; these now show May post-recession record sales of 17.6mn, down slightly from the prior estimate of 17.7mn. 

"We do not begin our current quarter GDP tracking process until the first retail sales report of the quarter, today's data reported by auto manufacturers' suggest a strong pace of real durable goods consumption in July," added Barclays.