Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

U.S. auto sales expected to continue their recovery in June: J.D. Power, LMC Automotive

Published 06/26/2020, 09:07 AM
Updated 06/26/2020, 09:10 AM
© Reuters. FILE PHOTO: Automobiles are shown for sale at a car dealership in Carlsbad, California

(Reuters) - U.S. auto sales are expected to continue their recovery in June following a collapse in April, as coronavirus-led lockdown restrictions ease and buyers slowly return to the market, industry consultants J.D. Power and LMC Automotive said.

The consultancies estimate total U.S. vehicle sales to fall about 25% to about 1.09 million units in June, slowing from an over 40% plunge in April and a 29% decline in May.

"The industry continues to show signs of recovery in June," the consultancies said in a statement on Friday.

"The combination of pent-up demand, states relaxing coronavirus-related restriction and elevated incentives are all providing a tailwind for the industry."

Record levels of incentives by automakers are supporting the sales recovery, with incentive spending on pace to reach $4,411, the highest ever for June and an increase of $445 from a year earlier, J.D. Power and LMC Automotive said.

© Reuters. FILE PHOTO: Automobiles are shown for sale at a car dealership in Carlsbad, California

But inventory constraints amid the COVID-19 pandemic and any easing of the pent-up demand could hurt the overall pace of the sales recovery, said the consultancies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.