Introduction.
December 2007 through June of 2009 the United States witnessed the Great Recession. The Great Recession started succeeding the housing market crisis and resulted in severe consumer spending cutbacks [1]. The volatility of the economy in 2007 is often compared to the economy during the Great Depression. The Great Recession affected the auto industry the hardest. As jobs are lost and income declines consumers are less likely to buy big ticket items like vehicle, especially trucks. The U.S. labor market reports that over 8.4 million jobs we lost during the two year span [1]. The Great Recession was pronounced over in 2009 however, the market did not begin to bounce back until late 2010. According to seasonally adjusted data provided by research from the Auto Observer demand was stifled in the first three quarters of the year but began gaining momentum in the fourth quarter leading into 2011 [2]. Seasonally adjusted data is used to predict trends associated with removing or adding a seasonal pattern in a time series. The Department of Motor Vehicle (DMV) suggests that the health of the United States economy and vehicle sales is highly correlated with several other factors including gas prices, mileage, etc [3]. Assumedly, when gas prices are high, demand for fuel efficient cars will rise. Demand for trucks or SUVs will fall. The opposite can be said when gas prices are low. The DMV also …show more content…
I want to find that unemployment will have the most significant effect on truck sales. Truck sales will fall in times of economic hardships. As variables like change in gas prices rise, I would expect change in truck sales to decrease rapidly. I would also expect truck sales to increase as finance rates
December 2007 through June of 2009 the United States witnessed the Great Recession. The Great Recession started succeeding the housing market crisis and resulted in severe consumer spending cutbacks [1]. The volatility of the economy in 2007 is often compared to the economy during the Great Depression. The Great Recession affected the auto industry the hardest. As jobs are lost and income declines consumers are less likely to buy big ticket items like vehicle, especially trucks. The U.S. labor market reports that over 8.4 million jobs we lost during the two year span [1]. The Great Recession was pronounced over in 2009 however, the market did not begin to bounce back until late 2010. According to seasonally adjusted data provided by research from the Auto Observer demand was stifled in the first three quarters of the year but began gaining momentum in the fourth quarter leading into 2011 [2]. Seasonally adjusted data is used to predict trends associated with removing or adding a seasonal pattern in a time series. The Department of Motor Vehicle (DMV) suggests that the health of the United States economy and vehicle sales is highly correlated with several other factors including gas prices, mileage, etc [3]. Assumedly, when gas prices are high, demand for fuel efficient cars will rise. Demand for trucks or SUVs will fall. The opposite can be said when gas prices are low. The DMV also …show more content…
I want to find that unemployment will have the most significant effect on truck sales. Truck sales will fall in times of economic hardships. As variables like change in gas prices rise, I would expect change in truck sales to decrease rapidly. I would also expect truck sales to increase as finance rates