While much is being made of the ISM smash this morning and China’s ‘official’ PMI overnight, it seems cognitive dissonance is on the rise as China’s ‘other’ PMI collapsed and US Construction Spending dropped precipitously. It was only a month ago that ISM was sub-50 and that housing (and construction spending) was set to lift us out of the growth-scare. Apparently not. But there is another pillar of this recovery that has been stalwart during the equity market rally – that of US auto sales… until now… (Read more…)
- *FORD U.S. VEHICLE SALES UP 11%, EST. UP 17%
- *GM JULY U.S. VEHICLE SALES RISE 16%, EST. UP 20%
- *CHRYSLER JULY U.S. VEHICLE SALES UP 11%, EST. UP 16%
It seems that all that channel-stuffing, subprime-lending, term-extending has hit its peak as, despite smiles and being ‘pleased’, US auto companies are underperforming expectations (as Ferrari exceeds).
[VIA Zero Hedge]