...what is particularly disconcerting is how credit-sensitive spending has failed to respond to the recent downdraft in market interest rates. Five-year auto loan rates have fallen 40bps in the past six months and 100bps in the past year, to 6.4%. However, even with that, auto sales still tumbled 5% in June, to 11.1 million annualized units — the 15th weakest number in the past 27 years, not to mention, well below new estimates of replacement demand of around 14 million (and the consensus was at 11.4 million for the June tally).
---Rosenberg, 7/7
No comments:
Post a Comment