(Reuters) - New vehicle sales in the United States are expected to rise in November, a report from industry consultants showed on Wednesday, as demand for the latest models remains strong and inventories improve.
U.S. new vehicle sales, including retail and non-retail transactions, are estimated to reach 1,236,000 units in November, a 10.2% jump from a year earlier, according to the joint forecast report by J.D. Power and GlobalData.
"Sales growth is being enabled by improving vehicle availability," said Thomas King, president of the data and analytics division at J.D. Power, in a statement.
Despite the nearly six-week UAW work stoppage, retail inventory levels in November are expected to see a 7.5% increase from last month and a 43.7% increase compared with last year.
Inventory pile-up, however, led to a 1.9% year-on-year decline in transaction prices with an average price of new retail vehicles at $45,332.
"The increase in new-vehicle supply and higher interest rates are resulting in falling per unit dealer profits, but those profits continue to exceed pre-pandemic levels," said King.
J.D. Power and GlobalData have also raised the annual forecast for global light-vehicle sales to 89.3 million units, up 10% from last year, on strength in China demand.
Meanwhile, the forecast for 2024 is unchanged at 92.3 million units, an increase of 3% from 2023.
"The market may be reaching the end of true pent-up demand from the pandemic unless there is a marked reduction in transaction prices around the world," said Jeff Schuster, executive VP at GlobalData.