One of the key industries that has a big impact on the pace of economic growth is the motor vehicle industry. The pace of these large purchases can be a good indicator of the health of the US economy given the high dollar amount of sales per year as well as the large supply chain that impacts many other suppliers and industries.
Despite recent concerns about the pace of consumer spending the motor vehicle industry remains strong as measured by the total value of shipments of motor vehicles and parts. Over the past year this indicator has increased 9.5%, indicating a strong market.
In fact, the total monthly value of shipped motor vehicles and parts now exceeds $72 billion which is an all-time high. This indicates that the motor vehicle industry is in good shape despite higher interest rates and rising inflation. Given the broad scope of the motor vehicle industry from the many suppliers, the large motor vehicle manufacturers, and the distribution of auto dealers all over the country, a healthy dollar amount of production and shipments is likely to be supportive of continued strong economic growth.