Wednesday, November 30, 2011
Is it finally getting better?
We all know how important the auto industry is to American commerce. Over the last two years you could describe that industry as sluggish at best. With competition being extremely high, automakers have been fighting for market share in a market with decreasing market size over the past few years. When the numbers come out for November they are expected to be the best in two years. I think this article is valuable to us because we can use the auto market as a litmus test of sorts for the rest of the economy. With this, we can look for consumption to continue to rise ( as we saw on cyber Monday and black Friday with record numbers) and hopefully unemployment to continue to creep in a downward direction.
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The article did make a good point explaining that deferred demand may want us to caution this good news. This just may be a surge of purchases in the auto industry that didn't happen in the summer due to the tsunami in Japan that increased oil prices.
ReplyDeleteHopefully consumptions from many industry and different channels can help boost the economy and help lower the unemployment rate.
ReplyDeleteThe auto industry does seem to be getting better and many consumers are heading out to show rooms, as seen in this article , http://www.nytimes.com/2011/12/02/business/car-buyers-flock-to-us-showrooms.html?ref=economy
ReplyDeleteHaving an interest in getting a career in the industry I hope to see it continue on an upward trend.
The fact that the auto industry is doing better could definitely imply good things for the economy as a whole. More people are now choosing to by new over used cars. This could mean that they have more faith that the economy is picking up and getting better.
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