Autos In The US Economic system (3)

Mary T. Barra, the chief government of Common Motors, with President Trump at a Michigan occasion last month to discuss automaking and job creation.

Passenger automotive sales plummeted again in March, dragging U.S. auto gross sales to their third straight monthly decline, a powerful indication that years of gross sales development have come to an end. As cars remain a degree of battle, Detroit pushes to promote pickups in a market long skeptical of them, in an effort to tap a Chinese style for American brands.

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The odd-looking line in this graph is the one for home consumption of autos and parts as a fraction of GDP; the line begins to drop after 2002, solely reversing in 2010. It is odd to me as a result of a graph of US vehicle gross sales is basically flat from 2001 to 2007 at between 16 and 17 million vehicles per yr. Reading off Stuart’s graph above, the gross consumption line starts at about three.7% of GDP in 2001 and drops to round 2.8% in 2007, so roughly a 25% drop. Looking at BEA Table 1.1.5. US GDP rose 36% throughout that interval.