U.S. car sales slump and that’s a bad sign for the economy

Well it might not surprise you anymore that the car sales market has a strong bound with the overall economy in the country, so it basically means if the new cars become harder to sell and the car stock at dealerships are still full, than there’s a problem in the middle.

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The retreat in the auto sector reported Monday mirrors lackluster broader consumer spending data released Friday. Both readings fly in the face of the two most-followed gauges of consumer sentiment, now at 17- and 11-year highs. It also contrasts with an index of optimism among small businesses –local car dealers among them -holding near levels unseen since the mid-2000s. On the eve of the car-sales data, one veteran money manager warned that investors may be getting ahead of themselves on their confidence in the economy, with the chance of a sell-off increasing. Bob Doll, wrote in an April 3 letter to clients that economic concerns were greater than worries over President Donald Trump’s relations with Congress in his effort to enact his agenda of stimulus.

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