There’s a pretty strong correlation between auto sales and job creation. It makes sense. Nobody is buying a car when they don’t have a job. And having a car is a pre-requesite, in many cases, for attending a job.
So monthly light vehicle sales numbers are an important thing to watch during jobs week.
The jobs report comes out on Friday, but today we’ll get the car numbers.
From Michael Ward at Sterne Agee:
U.S. light vehicle sales for June are expected to be released throughout the day on Tuesday, July 2. We expect U.S. light vehicle sales of 1.355 million units, up 6% from the year-earlier period, or 15.4 million unit SAAR versus a 14.3 million unit rate in the comparable period last year. On a daily rate basis sales are expected to improve 10%. U.S. light vehicle sales have totaled between 13.9 and 15.5 million units every month since the beginning of 2012.
The numbers will come out throughout the day.
Meanwhile, there’s chatter about a weak report on Friday.
WEAK JOBS REPORT AHEAD? – Friday’s June jobs number, critical for Fed action on quantitative easing, looks like it may be soft. The latest weak indicator came Monday in the employment portion of the ISM manufacturing index, which dropped to 48.7 from 50.1, the worst reading since the economic recovery began in 2009. Pantheon’s Ian Shepherdson: “[W]hile [the ISM figure] does not guarantee a soft payroll reading on Friday, it shortens the odds. The consensus looked quite high at 175K even before this report.”
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