US retail sales are expected to decline in December as supply shortages and high demand push prices soaring, consultants JD Power and LMC Automotive said in a report released on Thursday.
Retail sales of new vehicles could fall 17.7% to 2,923,600 units compared to the previous year, the report said.
“The strong demand with this limited supply is causing prices to continue to rise,” said Thomas King, president of data and analysis at JD Powers.
Carmakers of all sizes are struggling with the strongest inflationary pressure of the last three decades, following a relentless rise in commodity prices.
Average trading prices are expected to reach $ 45,743, exceeding the $ 45,000 mark for the first time and 20% higher than in December 2020, when prices first exceeded the $ 38,000 level.
Production at car factories rose 2.2% last month after rising 10.1% in October. However, motor vehicle production in November remained 5.4% below the levels observed in the same period last year due to the global shortage of semiconductors.
Total new vehicle sales for December 2021, including retail and non-retail transactions, are expected to reach 1,245,600 units, down 20.5% from last year.
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Source From: Capital
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