U.S. auto sales in gaining momentum in October

U.S. auto sales for October seasonally-adjusted annualized rate was18.13 million units outpacing the stellar 18.06 million units sold in September. This is the best performance since 2001, and the sixth straight months of sales above the 17 million unit mark.

Auto sales have gained momentum, as a result of lower interest rates, lengthening loan terms, strong demand for light trucks, and a healthy economy. While many of these factors are likely to remain in place over the near term, it will be difficult for sales to be sustained above the lofty 18 million unit mark.

"October's tally starts the fourth quarter off on a high note, and auto sales will likely remain a bright spot in the U.S. economy for the remainder of the year - even if the SAAR falls from current levels.  For the year as a whole, auto sales are tracking 17.27 million units - a sizable increase over last year's 16.44 million units", says TD Economics.