Annualized seasonally adjusted U.S. sales of domestic and foreign autos and light trucks totaled 13.5 million in December; the fourth month in a row over the 13 million mark. Using our 3-month moving average, sales are up 9.2% from the prior year. The industry's hoped for 2011 sales of 13 million plus did not happen, but 2012 should top that number. Annualized sales averaged 13 million for the first four months of 2011, and 13.3 million for the last four months, but the middle of the year was weak. High unemployment, stock market gyrations, $4 gas, and worries about a double-dip recession are all working against faster auto sales recovery. Auto sales remain about 19% below the average annual sales of 16.7 million from January of 2001 to December of 2007, before sales started to decline in 2008. The low point for sales were the first six months of 2009, when annualized sales averaged 9.6 million. It is clear from the data that the $3 billion Cash for Clunkers program did nothing but reward people for buying cars later or earlier than they had already planned. Our graph shows a 3-month moving average of seasonally adjusted annual rates to smooth out some of the month-to-month volatility.
