Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 16 March 2017

Now car sales are rolling over too

Car sales roll

The residential construction boom is set to roll over as new apartment valuations miss the mark, and now new motor vehicle sales are rolling over too. 

Fewer than 95,000 new units were shifted in seasonally adjusted terms in January, some way below the peak of more than 100,000 in March 2016. 

Clearly a weaker result. Still, new motor sales have been on a tremendous run, notching up 1.17 million units sold over the past year.

Sports Utilities (SUVs) are now officially taking over the world, as evidenced in the traffic queues of all Australian capital cities.

At the state level, new motor vehicle sales were already in decline in Western Australia, but now other states are easing too. 

Finally, and curiously, it was the best February in four years in terms of monthly production volumes, not that the optimism will last as the industry is shuttered in Australia. 

The wrap

With residential construction set to fall, and new car sales following suit, it's very hard to see how the cash rate will be hiked in 2017, and that's before we even mention the adverse impact of the auto assembly industry closures. 

In fact, there is more likelihood of a cut.

More information will come to light this morning, in the guise of the labour force figures for February 2017.