It is expected that August factory activity and auto sales will show a deceleration. Domestic auto sales are expected to downshift after hitting an annual rate of 17.8 million in July, the peak seen this year. Economists are expecting a 17.1 million annual rate for August.
Analysts expect August U.S. sales drops of 5% to 7% for General Motors (GM) and Ford (F) compared with a year ago, with a slight decline for Toyota (TM) and slight increase for Honda (HMC). General Motors and Ford reported declining U.S. sales in July. GM noted in July that its strong retail sales results were offset by lower fleet sales, which tend to carry lower margins.
J.D. Power and LMC Automotive expect sales to come in at a 16.8 million annual rate, consistent with their projection that sales will end the year at 17.4 million, just below last year's 17.5 million record. Individual automakers will release monthly sales totals throughout the day on Thursday, with analysts compiling the sum total by day's end.