Analysts at the Royal Bank of Canada found that new car sales in the US have reached stagnant levels, which explains their strong decline over the past month.
RBC estimates that U.S. passenger car sales reached an annual rate of 12.8 million vehicles in May last year, up from 14.6 million in April last year.
RBC analysts say that last month sales were three days lower, but May also usually sees the start of a seasonal increase in car sales.
The report notes that the US auto market appears to be increasingly concerned about the economy, inflation, rising interest rates and fears of a recession.
RBC revised its forecast for U.S. car sales this year to 14.7 million units, down 2% from the 15.1 million units recorded in 2021 and up from its previous estimate of 15.2 million units.
Source: El Iktisad
