University of Michigan predicts 17 million auto sales in 2016
An optimistic auto sales and economic forecast comes from the University of Michigan, though a bit more cautious than NADA forecast.
University of Michigan economists predict 16.6 million light vehicle sales in 2015 (versus NADA 16.9 million) and 17 million in 2016.
In August, the light vehicle sales pace was the best since January 2006, said economist Matthew Hall. The truck sales share has averaged more than 53 percent so far this year, reflecting the strength of small CUV sales and an influx of new truck and SUV models from domestic manufacturers. Trucks have a smaller share in the Washington area (see article on page 1, above), but crossovers are still strong here.
The University of Michigan economists also see meaningful economic growth next year, with GDP jumping from 2.2 percent this year to 3.1 percent in 2015 and 3.3 percent in 2016. They predict that 5.3 million jobs will be created in the next two years. Construction of new homes will continue to rise, too, which should boost truck sales.Download Bulletin PDF