New motor vehicle sales bounced nicely to 97,136 in April thanks to increases in New South Wales and Victoria, but are now tracking some way below the peak of just over 100,000 in the month of September last year.
1.17 million new units were shifted over the year to April 2017, one for about every 16th adult in Australia.
Amazingly the number of Sports Utility Vehicles (SUVs) sold in April approached the number of passenger vehicles, following an astronomical rise. It appears to be only a matter of time before SUVs are the number one product, which is remarkable.
At the state level, sales in Queensland may have been knocked back a little by severe weather, and only Victoria remains in a convincing uptrend, being the state with the fastest population growth rate.
Finally production volumes continue to drop off a cliff as product lines are discontinued in Australia and the car manufacturing industry is shuttered.
Automotive production volumes fell to just 6,937 in April, some 50 per cent lower than a year ago.
The wrap
New vehicle sales remain soft in the resources states. However, the Reserve Bank noted in its Board Meeting released today that:
"Recent data had provided further signs that the downswings in the Western Australian and Queensland economies were coming to an end."
Almost everything about the Minutes suggested to me that the official cash rate could be on hold for a long time.
"Recent data had provided further signs that the downswings in the Western Australian and Queensland economies were coming to an end."
Almost everything about the Minutes suggested to me that the official cash rate could be on hold for a long time.
