One of the first available indicators about the U.S. economy in 2012 is the measure of retail sales of light vehicles and the news is good: January saw new sales just under 14.2 million (at an annual rate), up from 13.6 in December 2011. This is highest monthly level since May 2008 (even higher than the August 2009 spike, or as I like to call it “Mount Cash-for-Clunkers”).
The rebound in sales means higher production (the blue line in the chart) and job growth: over the past two years the motor vehicle industry has added nearly 160,000 jobs, nearly half of all the manufacturing employment gains. Not bad for an industry that many wanted to give up on, an industry that was greatly helped by President Obama’s actions in 2009 [3]. These sales and job growth are an example of the resurgence of the American auto industry [4]!
And, importantly, January’s growth in retail sales of light vehicles is a hopeful sign that economic strength seen in late 2011 may be carrying into early 2012. We’ll be eagerly watching other economic indicators as they begin to trickle in, starting with the Bureau of Labor Statistics’ report on the Employment Situation in January, which will be released tomorrow.
~Mark Doms, Chief Economist, U.S. Department of Commerce
February 2, 2012
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