By Kyle Cheng
According to the latest “SEMA Industry Indicators” report, the auto sector has recovered 74% of the jobs lost during April and May, compared to just 47% for overall American manufacturing.
The U.S. economy continues to recover what was lost in the early months of the pandemic. Much of the pent-up demand from April and May has likely been satisfied, and now the economy settles into a period of smaller month-over-month growth as it works to regain what was lost in the early months of the pandemic.
The auto sector, one of the hardest hit in the early months of the pandemic, has experienced one of the better recoveries so far. It has recovered 74% of the jobs lost during April and May, compared to just 47% for overall American manufacturing. Likewise, new vehicle sales are on track to reach just over 14 million units in 2020—18% below 2019 but 60% higher than April.
Consumer confidence is down but remains higher than the lows seen during the last recession from 2007–2009. Right now, the end of stimulus and pandemic unemployment payments are headwinds against this. As the virus situation improves, consumers will gain more confidence and increase their spending.
Want more information on the trends affecting the specialty-equipment industry? Download the September “SEMA Industry Indicators Report”—available for free at www.sema.org/research.