U.S. auto sales rose in August to a cyclical high of 16.1 million units (seasonally adjusted annual rate), the best pace since November 2007. Domestic light truck sales are leading the auto industry's recovery. This is the latest confirmation that our “Second Recovery” scenario for the U.S. economy remains intact.
The simple thesis is that the delayed recoveries in auto and home sales created plenty of pent-up demand, which is now boosting the economy. The recoveries in these two industries are self-reinforcing since the strength in light truck sales is partly attributable to more work in the construction industry.
Source: Ed Yardeni — Ed Yardeni is the president and chief investment strategist of Yardeni Research Inc., a provider of independent investment strategy and economics research for institutional investors.