Record vehicle sales: According to the Federal Chamber of Automotive Industries (FCAI), 92,308 new vehicles were sold in July, the biggest July result on record and up 2.7 per cent on a year.
The Performance of Services index rose by 2.9 points to 54.1 in July – the fastest pace of expansion since February 2014.
What does it all mean?
The list of positive economic indicators released in August got a little longer. Yesterday we saw an out-sized lift in retail activity and today data showed a surge in car sales over the month of July coupled with a healthy lift in services sector activity. The services sector is now growing at the fastest pace in more than a year while more than 92,000 cars were sold in July – marking the strongest July month on record.
Interestingly sports utility vehicles (or four-wheel drive vehicles) remain the ‘new black’. While sales of ‘ordinary’ passenger cars softened in July, SUVs scaled new heights. In fact just over 380,000 SUVs were sold over the past year – a record high. One in three new vehicles sold in Australia is a SUV. And 42 per cent of combined SUV and passenger cars sold are SUVs. Buyers continue to embrace the versatility of SUVs, the high driving position, features and general value for money.
Interestingly luxury vehicle sales continue to dominate activity. No doubt the lift in home prices is providing a degree of comfort to household budgets and allowing more people to upgrade their rides. Sales of marques like BMW, Mercedes-Benz, Audi, Porsche and Lamborghini were all at record highs over the past year.
What do the figures show?
According to the Federal Chamber of Automotive Industries (FCAI), Australian new motor vehicle sales totalled 92,308 in July – the biggest July result on record and up 2.7 per cent on a year ago.
Passenger vehicles fell by 4.7 per cent over the year to July, light commercial vehicles rose by 4.7 per cent, heavy commercial vehicles fell by 3.4 per cent and sports utility vehicles rose by 13.4 per cent.
The FCAI noted: “Across the country, sales rose in most states and territories. Sales were up 1.6 per cent in the Australian Capital Territory, 6.1 per cent in New South Wales, 5.3 per cent in Queensland, 11 per cent in Tasmania and 4.6 per cent in Victoria. Sales fell 8.4 per cent in the Northern Territory, 4.7 per cent in South Australia and 12.7 per cent in Western Australia.”
What is the importance of the economic data?
The Federal Chamber of Automotive Industries releases estimates of car sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto & components companies.
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