Consumer confidence has been one of the biggest obstacles to new-vehicle sales, and auto financiers have repeatedly cited improved consumer sentiments as a requirement for higher sales volume.
For February, consumer confidence climbed to its highest reading in three years: 70.4, according to The Conference Board. While still relatively low, the index surpassed its 64.8 reading in January and eclipsed a 46.0 reading in February 2010.
Though this recent consumer confidence data marks only the third straight month of increase, it’s the first time the index has topped 70 in more than a year. Will the improvement continue? Might we start to see further improvement in new-car sales volume?
Here’s a look at consumer confidence (the blue line) tracked against new-vehicle sales (the red line):
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