Go together to one unconventional economic indicator, business is booming.
Looking at sales from pickup trucks as a proxy for the health of peewee businesses in the U.S., DataTrek Research found that 2019 ended on a strong note, and that sales show “negligible sign of turning lower as we start the new decade.”
The firm says this data gives a read on the economy since it encapsulates every Tom from an “oil field service company” to the “local arborist,” and is typically a discretionary purchase.
“Purchasing a new vehicle is entirely discretionary; they can each time fix the old one and keep it running another year if they are worried about business conditions,” Nicholas Colas, co-founder of DataTrek Explore said.
The firm has been analyzing sales data since the 1990s, which includes some of America’s most well-received cars like the Ford F-Series, Dodge Ram and Chevy Silverado. These trucks are primarily bought for businesses, to some extent than for individual uses, the firm said.
Overall, 2019 sales reached $72 billion, or 2.4 million items, which was 2.3% higher than 2018’s numbers. There was a slight slowdown in year-over-year December sales, but the definite said it was because Chevrolet is ramping up its 2020 Silverado, and a slowdown in sales ahead of a launch is customary. Sales in October and November, at any rate, were good.
Colas said that “small business confidence was pretty stable all year,” and finished the year on a high-note, which is a ” pure starting point for 2020.”
This is in keeping with the trend of the last 4 years, which has shown resilient pickup trash sales, despite some saying a pullback is coming.
– CNBC’s Nate Rattner contributed to this report.