Why 2011 U.S. GDP And The Auto Industry Are Inextricably Linked

Deutsche Bank’s U.S. economists are notoriously bullish on 2011 U.S. GDP, and a core reason is the U.S. auto industry.

Economist Carl Riccadona estimates that car sales are going to add 0.7% to 0.8% to GDP in 2011. That’s a big chunk for one single industry, but is the result of a few driving factors:

  • Per capita auto sales hit a low during the recession
  • Vehicle sales will rise with increases in income and credit access

So nearly a percentage of Deutsche Bank’s bullish 4.5% growth projection is based on auto sales. If you’re gunning for bullish Deutsche, this may be a stat to keep a close eye on.

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Photo: Deutsche Bank

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