Forecast: A couple things seem certain to drive an economic recovery:
For 2-3 years, the population has been growing and maturing but
has been unable to make timely, seasoned, structural purchases in their lives.
This is building pent-up demand that is getting larger than normal
in a recession because this one is more prolonged. The longer the recession
goes, the more the pent-up demand will grow. This includes big-ticket items
like houses, cars, appliances, etc.
Actual News as of 2/12/2011: "We're starting
to see people showing an inclination to go back into the dealerships, to go
back into the malls," said Jim Bunnell, general manager of General Motors
Co.'s U.S. sales operations. "It's not going to happen overnight, but we
think as we roll through 2011, we're going to see a nice, gradual improvement
and recovering in the automotive sector."
For most of 2010, car sales were driven by people
who needed a car rather than wanted a car. Jeremy Anwyl, CEO of consumer website Edmunds.com, says that still holds true at the
end of the year: "They've been putting it off and they can't put it off
any longer. Some people waited till this time of year to catch the close-out
deals."
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