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Experts say U.S. car sales have dropped to ‘recessionary levels’

Sales rates of new cars in the United States have reportedly dropped to levels associated with economic recessions, a dire warning from experts as the U.S. economy continues to get pummeled by inflation, supply chain crises and other issues.

Sales rates of new cars in the United States have reportedly dropped to levels associated with economic recessions, a dire warning from experts as the U.S. economy continues to get pummeled by inflation, supply chain crises and other issues

Analysts with the New York-based RBC Capital Markets told MarketWatch this week that “the May U.S. light-vehicle seasonally adjusted annualized rate of sales came in at 12.8 million vehicles, below RBC’s forecast of 13.4 million vehicles and down from April’s 14.6 million.”

“We have not yet seen any evidence of demand destruction,” analyst Joseph Spak told the publication. “But, if a recession were to occur, it’s likely that ‘recessionary’ levels of demand are in the (12 million to 13 million) range.”

Car manufacturers have been struggling to meet demand over the past year and a half due to major ongoing supply chain crises and supply shortages, particularly in the area of semiconductor chips.

High gas prices have also dampened economic activity surrounding cars, particularly as the warmer summer months approach and car usage and travel is traditionally expected to pick up.

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10 thoughts on “Experts say U.S. car sales have dropped to ‘recessionary levels’”

  1. Concerned Retiree

    Who can afford a new car with the car manufacture started pricing fixing and increasing their prices by 50% to make up for poor sales and used cars prices went up so they are more than when they were new. We have to survive and a vehicle is as high as a new home during this ridiculous DEMOCRAT recession.

  2. No wonder, with the ridiculous prices. Even used car prices are unbelieveably high. Not that many years ago, you could buy a house for what a new car costs now, especially pick up trucks.

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