The Commerce Department said retail spending was flat from the month before, but automobile sales dipped considerably, something they attribute to poor weather on the East Coast and a flagging economy in Europe.
Europe has officially entered a second period of economic recession, following a period of tepid growth which it which had immediately following its first recession of just a few short years ago. Consumer confidence in Europe is weak as governments struggle to stay ahead of countries teetering on the brink of economic collapse. Formerly solvent nations like Italy, Greece and Spain, now seem destined for bankruptcy. This type of instability is hardly conducive to selling big ticket items like imported or even domestically manufactured automobiles. Until that economy recovers U.S. automakers who do business there will need to tighten their belts and bear the burdens of a declining economic situation. Eventually the situation will turn around and those automobile manufacturers who can weather the current storm will stand to reap big benefits when consumers finally start spending money again.
In the U.S. economists say now that the weather on the East Coast has stabilized it seems more likely automobile sales will pick up their pace once again. U.S. automakers had been seeing stellar sales across the board, month over month, for the past year or so. This recent decline, they said, is only temporary and sooner-rather than later-U.S. consumers will start buying again.
The good news is that if you have been considering buying a new car now might be a good time to do it as dealerships are hungry to make a sale. Be certain you do your homework first and shop around for the best possible deal-but if there was ever a time to buy a new car, now might be it.
Tags: auto sales