U.S. July Sales Heading for 8-Year High?

Retail sales of cars and light trucks in the U.S. are likely to reach 1.4 million units this month, up from 1.11 million in June to the highest July volume since 2006, predict LMC Automotive and J.D. Power.

The analysts forecast retail sales will climb to an annualized rate of 13.8 million units, second this year only to the 14.1 million-vehicle pace set in May.

LMC/Power expect the sales rate for the remainder of 2014 to average 16.5 million units, resulting in full-year light-vehicle volume of 16.3 million units. The forecast predicts premium segments will outpace others, driven by demand for near-luxury cars and SUVs.

The researchers say carmakers are doing a good job of managing output in North America to match demand. Inventories of unsold vehicles remained at an ideal 60-day supply in May and June. LMC Automotive has hiked its production forecast for 2014 by 200,000 units to 16.8 million vehicles compared with 16.2 million units last year.