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CHART OF THE DAY: Auto inventory slump may be sign of upcoming sales strength

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Auto sales have accelerated over the past three months, with July U.S. new vehicle sales hitting their highest point since mid-January, according to data compiled by Ward’s Automotive Group. This has resulted in historically low inventory levels at dealer lots across the United States, with 371,000 unsold vehicles as of June 30.

This resurgence in auto sales and the resulting drop in inventories comes on the heels of July’s Institute for Supply Management’s survey, which showed a pickup in the number of purchasing managers reporting that their customer inventory levels were too low. These trends could signal continued near-term sales strength in the automotive sector, providing a much-needed boost to manufacturing and the overall U.S. economy.

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About Jason Alexander

@jaalex53

Jason assists clients in the industrial products, consumer products and financial services industries and has more than 15 years of experience serving large multinational clients with particular emphasis on SEC clients, Fortune 500 and middle market companies. Jason has previously advised clients in the areas of accounting, risk management, mergers and acquisitions, process design and improvement, internal audit, regulatory compliance, internal and external financial reporting and information technology system implementation. Strong record of accomplishment of people, team and practice development across North America, Europe, Latin America, Africa and Asia.

Jason is also on the Board of Directors of the RSM US Foundation and a member of RSM’s cutting edge Industry Eminence Program, which positions participants to understand, forecast and communicate economic, business and technology trends shaping the industries RSM serves.

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