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U.S. car and truck production up 10.2% in 2022

U.S. car and truck production recorded year-on-year growth of 10.2% in 2022, to 10 million 060,000 units, according to data from the Federal Reserve.

The United States has one of the largest automotive markets in the world.

Overall, the country is the world’s second largest market in vehicle sales and production.

Truck production

U.S. subsidiaries of majority foreign-owned auto companies directly support more than 400,000 U.S. jobs.

In addition to auto assembly plants, many automakers have U.S.-based engine and transmission plants, and conduct R&D, design and testing activities in the United States.

While U.S. auto production in 2022 was 1.73 million units, up 10.9 percent year-over-year, truck production totaled 8.32 million units, up 9.9 percent.

Within the truck figure, production of light units was 7.29 million (up 9.7% year-on-year) and that of heavy units was 280,000 units (up 14.3%).

Economy

The U.S. economy returned to growth after two quarters of moderate contraction, but domestic demand remained weak.

According to the European Central Bank (ECB), net foreign demand and U.S. nonresidential investment were the main sources of growth in Q3 2022.

Looking ahead, the ECB expects domestic demand to continue to lack dynamism, as high inflation and tightening financial conditions continue to erode households’ real disposable income and dampen private consumption, while the sharp decline in housing starts associated with lower housing affordability and rising mortgage rates is expected to weigh on residential investment.

In October, headline inflation declined more than expected to 7.7%, and while still historically elevated, it is considered to have peaked as energy and food price indices continued to moderate.

Year-over-year core inflation eased to 6.3%, but is expected to remain more persistent in 2023, due to upward pressures from the rate of change in services prices (e.g., high rents).

 

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