Normalising of US car industry bodes well for next few quarters

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 63%

Deutschland Nachrichten Nachrichten

While sales have not reached previous peaks, they are getting there

If you had to point to one culprit holding back the US economy over the past 18 months, it would be the auto industry. Supply chain problems like the shortage of semiconductors have contributed to weak economic growth, anaemic productivity, rising prices and higher interest rates as the US Federal Reserve struggles to control inflation.

That deficit has affected the economy in all sorts of ways. Vehicle detracted 2% from real GDP growth in the third quarter of 2021 due to the sales slump, and by the third quarter of 2022 had yet to bounce back. The industry’s problems have hurt productivity growth due to the way productivity is calculated — vehicles that would sell for tens of thousands of dollars are not counted as output because they are sitting on factory floors waiting for chips that often do not cost very much.

All of those downstream effects mean that it is a big deal for the economy that production is finally normalising. Earlier in November we learnt that new vehicle sales in October jumped to 14.9-million from 13.5-million, the highest level since January. That is still well below the pre-pandemic normal, but it is huge for measures of output like GDP.

This would also be good news for productivity growth, which has been weak for a while. Faster economic growth without a corresponding pickup in the labour market means that productivity accounts for the difference.

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.
Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 12. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

PPC’s earnings tumble as sales remain subduedThe JSE-listed firm ascribed the results to lower earnings generation in SA and Botswana, and hyperinflation and a planned kiln shutdown in Zimbabwe
Herkunft: BDliveSA - 🏆 12. / 63 Weiterlesen »

Assessing data literacy in companies, sales teamsWhile business decision-makers recognise the importance of a data-literate workforce, few are encouraging employees to become more confident with data.
Herkunft: ITWeb - 🏆 45. / 51 Weiterlesen »