Today’s economic data is very important, as it confirms two big bullish trends we’ve been watching, and have flagged before.
First, car sales.
All the companies that have reported today have beat expectations.
You can see a roundup from Reuters here, but the bottom line is that the numbers out of Chrysler, GM, Nissan, and others have been really solid.
This isn’t that surprising, really.
Even with the bad economy, car sales as a share of the population are near all time lows. It’s almost inconceivable for them to not go up from here in any market.
Then you have this morning’s construction number. It jumped 1.4%, the total mirror image of what was expected.
Again, we’ve flagged construction before as being something so ridiculously beaten down, it has nowhere to go but up.
Back in August we noted that construction spending actually grew for the first time in 5 years.
These things, cars, construction are necessary parts of the economy, so eventually we have to build and buy more, just as the existing stock degrades, and population grows.
Thus even when things are weak, eventually they have to rebound, and they are.