Page 21 - On The Move - Volume 16, Issue 4

slightly to 2.0% from the originally reported 2.1%. Consumer
spending was revised up and played a much larger role than
originally estimated as exports, inventories, and residential
investment were revised down. Consumer Confidence, as
measured by the Conference Board, declined modestly in August
by 0.4% to 135.1 from the highest reading so far this year in July.
The percentage of households reporting plans to purchase a
vehicle in the next six months improved to its best level in three
months in August. Purchase intentions remain similar to last year.
Plans to buy a house surprisingly fell in August to the lowest level
in four months but remain similar to last year.

weekend. The August SAAR came in at 17.0 million, increasing
versus last year’s 16.9 million and up slightly from July’s 16.8
million rate. The decline in car sales seems to be bottoming out
as car sales in August fell 1% compared to last year. Market share
for cars was 27% last month. Light trucks outperformed cars in
August, finishing the month up 15% year-over-year.

Strong fleet sales continue to support the new vehicle market.
Combined rental, commercial, and government purchases of
new vehicles were up 23% year-over-year in August. Commercial
(+10%) and rental (+45%) fleet channels were up year-over-year
in August. With the highest average incentive in 20 months, retail
sales of new vehicles were up 9% in August, leading to a retail
SAAR of 14.8 million, down from 14.9 million last August but the
strongest retail SAAR since December. Fleet sales are up 7.3%
in 2019 through August, and retail sales are down 1.3%, as the
overall new vehicle market is up 0.1% this year.

New vehicle inventories came in under 4 million units for the
fourth consecutive month and are at the lowest level since August
2016.
Rental risk pricing improves. The average price for rental risk
units sold at auction in August was up 0.1% year-over-year. Rental
risk prices were up 1.2% compared to July. Average mileage for
rental risk units in August (at 47,700 miles) was up 10% compared
to a year ago but down 3% month-over-month.

Slowing job growth but consumers keep spending. Second-
quarter economic growth as measured by GDP was revised down

On The Move 2019 19