The worst October for U.S. auto sales in the last 13 years, it was.
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Oct-Oct Change in Full-Size
What’s hot? Toyota’s fuel-stingy hybrid Prius, whose sales were up 68% compared to October 2004. What’s not? American gas-guzzling SUV’s, down over 50%. Sales of all vehicles combined were down 25% for GM and Ford.
There was a time when a 25% drop in car sales would be an indication that a recession is underway. But the clear consensus is that this won’t slow the Fed down a bit as it continues to ratchet interest rates up. The theory seems to be that autos don’t matter as much for the U.S. economy as they used to.
I think we’ll get a chance to test that theory.