Here’s why monthly auto sales figures are important

First business day of each month auto makers report their sales of domestically produced autos and trucks of the previous month. Numbers are based on a sales month basis rather than a calendar month. This is why Labor Day weekend sales were counted for August rather than for September 2013. Auto sales figures are a much anticipated event by financial markets and economists all around the world. Auto sales indicate the economic activity and the sales go up or down based on current economic conditions. Auto sales accounts for roughly 25 percent of total retail sales of the U.S. and therefore, become a good indicator of consumer demand. Since autos and trucks are big ticket items, they are more sensitive to interest rates and become another leading indicator of the economic activity.

Traditionally each manufacturer reports their sales individually throughout first three days of the month. But due to much anticipation, all three big U.S. car makers report on the first day of the month. As soon as numbers are released economists, Wall Street experts as well others go into action interpreting and forecasting auto sales data including seasonally adjusted annualized rate (SAAR) as well as other economic activity combined with the Commerce Department seasonal factors.