Wednesday, October 01, 2014

The virtuous circle of light truck sales and housing construction

I was just reading some different economic news articles, and I saw that GM posted a 19% sales gain last month, largely from light truck sales.  New home construction is continuing its slow rise, with August numbers up 18% for new home sales.  Could this be the final bit of the recovery?  If home construction can get its legs underneath it, then we can finally absorb some of the labor that has been underutilized for the past several years.  Every new home built will need dry wall, roofers, plumbers, concrete workers, excavation, electricians, painters, carpet and tile layers, cabinet installers, etc., etc., As these folks put more miles on their vehicles, they'll need to replace vehicles... and let's face it, with today's confiscatory tax regime, why wouldn't you get the nicest truck you can afford and expense it out on your taxes?  So hopefully the recovery in car and light truck sales (and by extension vehicle transport) will continue.