Ch#3 Car and Truck Sales

Question 1

howst thy Car and Truck sale reporth?

Answer 1

Individually by manufacturers, seasonally by Commerce Department, and an adjusted season aggregate by the Federal Reserve. 10 day basis

Question 2

Car and Truck Sales

Answer 2

Market Significance+ Moderate
Typical Release Time+ Third Business day after the ten-day period ends
Released By+ Motor Vehicle Manufacturers and Seasonally adjusted by the Commerce Department
Period Covered+ Prior Ten-day period

Question 3

What kind of good is a car sale?

Answer 3

Consumer and Investment good, 2/3 are for consumers the rest are sold to businesses, whilst, a tiny fraction going to the government

Question 4

What does the popularity of mini-vans and sport utility vehicles signify?

Answer 4

U.S. truck sales have started to grow because of this

Question 5

What are “light trucks”

Answer 5

Mini-vans and utility vehicles, the shift in light trucks have dwindled down the share of passenger cars being bought.

Question 6

Truck sales and production are factors for what

Answer 6

Monitoring and forecasting U.S. economy

Passenger vehicle companies like Chrysler are now a primary truck manufacturer

Question 7

Fleet Demand

Answer 7

Comprises of two types of buyers

1 Car Rental Companies
2 Company/Government Fleets

It is used by car manufacturers as a cushion for their sales, since fleet sales can be booked in periods when consumer sales are particularly slow

Question 8

How do car and truck sales perform during a recovery phase

Answer 8

They are classified as leading indicators by the Commerce Department, and have the strongest gains in the recovery phase of the cycle.

On average car sales increase by 1.5 % per month during the recovery phase and then 0.2 % during expansion.

Truck sales typically increase 0.9% per month during recovery and a slow 0.3% thereafter.

Question 9

How do car and truck sales perform during a recession

Answer 9

Care sales tend to decline by 1.0 % per month, but truck sales tend to hold up- growing at a 0.7 % pace. That, in part, reflects a secular shift toward light trucks and away from passenger cars

Question 10

Commerce Department compilation of personal consumption data

Answer 10

1 Seasonal Factors
2 Coverage (Auto dealer sales include used car sales)
3 Composition (data than can change due to shifts in the price purchased even if the overall number of units sold is unchanged)

Question 11

Days supply of unsold vehicles

Answer 11

It is a industry inventory-to-sales measure. Normally runs from 60-65 days. Tends to be higher in January, which is like 75. while in September, like, 55, average.