What happens when $2.99 for a gallon of regular fuels demand for new vehicles? The U.S. economy feels its VTEC kick in, of course.
According to The Detroit News, the U.S. Commerce Department reported the economy grew 3.5 percent in Q3 2014, with 0.59 percentage points contributed by auto sales. Said sales also delivered an 0.55 percent boost in Q2 2014, helping the GDP climb to 4.6 percent.
Spending is up, as well: 9.5 percent increase in automotive spending through September 30, resulting in a SAAR of $457.1 billion.
Meanwhile, October's sales are expected to rise 6.4 percent in comparison to the same time last year, with more to come according to Edmunds analyst Jessica Caldwell:
Car and truck sales have settled into a groove. Dealers are welcoming a consistent flow of shoppers into their showrooms, and the pace will likely remain steady through the end of the year. With declining gas prices and strong truck and SUV sales, the industry is poised for a very busy holiday season.
Forecasters are predicting 2014 sales will hit 16.4 million units, the best performance since 2006, with LMC Automotive projecting 17 million sold by 2018, 17.5 million by 2020. The figure would just best the previous high of 17.4 million SAAR, achieved in 2000.
The post Low Fuel Prices, Strong New-Car Sales Boost US Economy appeared first on The Truth About Cars.
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