Tuesday, August 7, 2012

XE.com - UPDATE 1-LMC Automotive lowers 2012, 2013 U.S. sales ...

TRAVERSE CITY, Mich., Aug 7 (Reuters) - LMC Automotive lowered its forecasts for U.S. auto sales in 2012 and 2013 based on anticipated slower economic growth compared with the first half of this year, an LMC executive said on Tuesday.

LMC, formerly a part of J.D. Power and Associates, lowered its 2012 U.S. auto sales forecast to 14.3 million light vehicles from its June forecast of 14.5 million, said Jeff Schuster, vice president of LMC and its chief forecaster.

LMC also lowered its forecast for next year, to 15 million vehicles from its previous projection of 15.2 million vehicles.

'We lowered our forecast because of a change from the significant economic growth in the first half to a flatter growth in the second half,' Schuster said on the sidelines of the Center for Automotive Research conference in Traverse City, Michigan, where he was also a speaker.

'There is a level of uncertainty among consumers,' Schuster said, adding the 2013 auto sales forecast was also lowered because he expects this level of uncertainty among consumers to extend into next year.

Schuster said LMC expects the U.S. economy to grow at a rate of 2 percent to 2.5 percent in the second half of 2012.

Polk has maintained its 2012 forecast for 14.3 million in U.S. light vehicle sales for several months, said Anthony Pratt of Polk, who also spoke at the conference on Tuesday.

Light vehicle sales were 12.8 million last year, indicating at 12 percent sales increase for the 2012 forecast by Polk and LMC.

So far in 2012, auto sales have been one of the major contributors to growth in the U.S. gross domestic product. Generally, auto sales lag growth in the overall economy during a recovery from recession, said Sean McAlinden, chief economist for the Center for Automotive Research.

'After the bottom of a typical recession, there is recovery first in housing and then in auto,' McAlinden said. 'This time, more than 40 percent of the GDP growth in the first quarter of 2012 was linked to auto and that is unusual.'

(Reporting By Bernie Woodall; Editing by Gerald E. McCormick and Maureen Bavdek) Keywords: AUTOS FORECAST/

(bernie.woodall@thomsonreuters.com)(+1-313-416-4071)(Reuters Messaging: bernie.woodall.thomsonreuters@reuters.net)

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Source: http://www.xe.com/news/2012/08/07/2854025.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art8

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