Here’s a Sign That “Economic Contraction” is Just Ahead
Since 2018, the global demand for cars has slackened off considerably.
Indeed, in the U.S., total new vehicle sales peaked all the way back in August 2015.
And, here in the waning weeks of 2021, car sales continue to disappoint. This is from Investor’s Business Daily (Dec. 2):
Automakers reported lower-than-expected November U.S. auto sales
The December Elliott Wave Financial Forecast showed this chart and explains why this is a portent for the economy as a whole:
Demand for cars appears to be a thing of the past. This chart suggests consumers are souring on the whole idea. It shows buying conditions for vehicles from queries issued by the University of Michigan’s monthly consumer sentiment survey since the mid-1950s. Since the mid-1960s, a decline in consumers’ view of car buying conditions invariably preceded every economic contraction. The measure has never experienced a more dramatic plunge than in recent months. Economic headwinds are likely much closer than economists realize.