Motor Vehicle Sales

DEFINITION of 'Motor Vehicle Sales '

The number of domestically produced units of cars, SUVs, mini-vans and light trucks that are sold. Motor vehicle sales are an economic indicator that records the reported sales by individual manufacturers on the first business day of every month.

BREAKING DOWN 'Motor Vehicle Sales '

Because motor vehicle sales are a large part of consumer spending in the United States, the motor vehicle sales data can provide important information on consumer-spending trends and on the overall direction of the economy.

Equity markets respond to strong economic growth, like higher motor vehicle sales, because they lead to higher profits and thus higher stock prices. The bond market, on the other hand, prefers moderate growth, so as to stem inflationary pressures, which hurt bond prices.

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