Broody’s said Wednesday it expects sales of cars, SUVs and light trucks to be stronger this year than theretofore projected.
The ratings agency upgraded its outlook for the global auto exertion from negative to stable, partly in light of improving business prepares.
Prospects for growth are improving in most major car markets except Britain, where Brexit-related uncertainty is trust to weigh on consumer spending, Moody’s said.
Moody’s also humiliated the growth rate it required to give the industry a stable outlook because automakers make delivered good profits and solid cash flows in spite of old maids the agency’s previous target rate of 2 to 5 percent. Now, the required range is well-deserved 1 to 3 percent.
Moody’s left its December forecast of a 1.5 percent mount rebel in sales for 2018 unchanged.
In addition, U.S. auto sales are expected to back away from less in 2018 than Moody’s previously forecast. Automakers are now envisioned to sell 16.9 million light vehicles in the U.S. in 2018, up slightly from Disheartened’s December forecast of 16.8 million.
Overall improvements in the economy partly driveway that adjustment. Moody’s now forecasts U.S. gross domestic product to flourish by 2.7 percent in 2018 and 2.3 percent in 2019, up from prior to estimates of 2.3 percent and 2.1 percent, respectively.
Sales of autos in the U.S. were down in 2017 after two record-setting years.
Nonetheless, consumer tastes have shifted in recent years to SUVs, crossovers and pickup trucks, which nurse to command higher transaction prices, and thus more profits for automakers. Assorted in the industry believe the shift to be either permanent or at least long in the matter of a payment.
In addition, the expiration of a tax cut on small vehicle purchases in China is expected to soften auto on the blocks gains in 2018, the firm said. China’s auto market is reckon oned to see 2 percent growth in 2018, and 2.5 percent growth in 2019.