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Posts Tagged ‘U.S. economy’

Economists Believe Strong Auto Sales to Continue in 2014

Survey shows credit trends will enable buyers to make purchases.

by on Dec.11, 2013

Economists expect buyers will have an easier time getting credit in 2014, and keep sales clicking along.

With 2013 fast coming to a close, new car sales have wildly exceeded even the most optimistic forecasts made at the beginning of the year – and increasingly easy and affordable credit is one of the factors planners and analysts cite for the industry’s resurgence.

However, the burning question heading into next year is: will that trend continue? While some observers worry the market might be ready to cool down, favorable credit trends could keep it going, according to a survey by WalletHub.com

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“Interest rates will remain low for the foreseeable future due to the combination of record-low credit losses – with the exception of a single quarter in 2006, charge-offs are at the lowest level since 1995 – and the Federal Reserve’s commitment to retain current policies until more demonstrable economic improvement takes place,” said Odysseas Papadimitriou, WalletHub’s chief executive officer. (more…)

U.S. Automobile Industry Makes $500 Billion Dollar Contribution to the Economy

Latest study shows more than eight million jobs created.

by on Apr.22, 2010

There are sound economic reasons why all industrialized nations, except the U.S., protect their auto industry.

The U.S. auto industry provides a substantial contribution to U.S. economic health, according to the latest study released this morning by the Sustainable Transportation and Communities group at the Center for Automotive Research (CAR).

The non-profit research organization looked at the economic and employment impact of automakers, parts suppliers, and dealerships in contributing to the economies of all 50 states.

The automotive industry spends $16 to $18 billion dollars a year on research and product development, half a trillion dollars on employee compensation, and is the major leader of the overall manufacturing contribution to the gross domestic product.

“It is difficult to imagine manufacturing surviving in this country without the automotive Sector, said Kim Hill, director of the Sustainable Transportation and Communities group at CAR, and the study’s lead.

“The industry’s impact is huge on a host of other sectors as diverse as raw materials, construction, machinery, legal, computers and semiconductors, financial, advertising, health care and education. In this time of national introspection concerning the value of the U.S.-based auto industry, it is clear the value is quite high,” Hill said.