Shoppers likely pulled back on auto purchases last month while boosting spending on other items and at restaurants, as more people got vaccinated against COVID-19 and business restrictions were further eased, the Wall Street Journal reported. Economists estimate that Tuesday’s Commerce Department report will show that overall retail sales declined 0.6% in May. They expect that sales excluding autos rose a solid 0.5% from a month earlier. Stronger overall spending is helping propel the broader U.S. economy, which grew at a 6.4% annual rate in the first quarter. Economists project that by the end of this year gross domestic product will reach the path it was projected to follow had the pandemic never happened — and then exceed it, at least temporarily. Vehicles, however, are in short supply as a global computer-chip shortage has left car dealers with a dearth of inventory. As a result, auto sales likely fell last month. Read more. (Subscription required.)
Amid pandemic shocks to the supply chain, what does the future hold for the auto industry? Scott Wolfson of Wolfson Bolton PLLC (Troy, Mich.) provides his perspectives on the latest episode of ABI’s #IndustryViewpoints. Watch here.
For further information and perspectives on supply chain interruptions and bankruptcy, pick up your copy of ABI's Interrupted! Understanding Bankruptcy's Effects on Manufacturing Supply Chains.
