Global auto sales have been stronger than expected, rising five per cent through July, reported Scotiabank.
According to the bank’s latest report, gains reflect a modest acceleration among the G7, especially western Europe, as well as a rebound in purchases across emerging markets. Though gains are expected to moderate through year-end, strengthening labour markets and improving financial conditions suggest the upswing is expected to continue in 2017.
Sales in western Europe advanced seven per cent year-over-year through July, while China also led the way with double digit gains.
North American vehicle sales exceeded 20 million units last year for the first time on record and have increased an additional three per cent year-over-year through July.
Despite talk that U.S. auto sales have plateaued, U.S. sales rose in July to an annualized 17.9 million units — the highest level of the year.
“The health of the U.S. consumer is the main driver of the North American sales outlook, and most indicators continue to point to ongoing gains,” said Carlos Gomes, senior economist and auto industry specialist at Scotiabank, in a written release. “U.S. job growth is advancing by nearly two per cent year-over-year, vehicle affordability remains near record highs and there is no evidence of deterioration in the automotive finance market,” he added.
In Canada, sales have also gained momentum this year, advancing in seven of 10 provinces.
