U.S. auto sales for March were reported this week and they came in below economist estimates. Our chart below has a decidedly toppy look, highlighting the challenge the incoming administration faces in in accelerating economic growth.
While the mainstream economic establishment will argue that expansions don’t die of old age, a satiated auto consumer certainly isn’t going to fuel an acceleration in growth.
Keep an eye on the auto market. A continued drop in auto sales could foretell a broader weakening in the economy.
Jeremy Jones, CFA
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