New car sales will slow down in May, say analysts
Consultants J.D. Power and LMC Automotive both revised forecasts for May 2016 retail sales downward; the former by 100k, the latter by 200k cars and trucks. Some of the volume will be made up by fleet sales and other non-retail means, but it's a sign that retail demand may be flagging. An LMC spokesperson told AN that "While we do not anticipate a retraction in volume over the next 12-18 months, strong year-over-year growth will be difficult to come by."
This comes as incentives have increased by 14 percent, according to AN, which may be another sign of weak demand. Earlier this month, a wave of concern about sales growth this year set off a slide in automaker shares, according to Fortune, representing concern that the flat sales trend would continue.
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