Auto sales may hit 28-year low

With America losing faith quickly in President Obama's ability to get the economy back on the right track, U.S. auto sales in August probably were the slowest for the month in 28 years as model-year closeout deals failed to entice consumers concerned the economy is worsening and they may lose their jobs.

Industrywide deliveries, to be released tomorrow, may have reached an annualized rate of 11.6 million vehicles this month, the average of eight analysts’ estimates compiled by Bloomberg. That would be the slowest August since 1982, according to researcher Ward’s AutoInfoBank. The rate would be 18 percent below last year’s 14.2 million pace, when the U.S. government’s “cash for clunkers" incentive program boosted sales.

“Home sales are way down, the stock market is way down, the unemployment report is very disappointing and consumer confidence is sputtering," Jesse Toprak, vice president of industry trends at TrueCar.com, said in an interview. “People just don’t want to make big-ticket purchases because they’re uncertain about their jobs and the value of their homes."

Consumers are avoiding showrooms as fear of a double-dip recession grows following the 27 percent plunge in existing home sales in July, said Mike Wall, an analyst for IHS Automotive. The U.S. unemployment rate in July held at 9.5 percent, near a 26-year high of 10.1 percent. The Conference Board reported today that consumer sentiment rose to 53.5 this month from a five-month low of 51 in July. Fewer Americans said jobs were plentiful in August.

With Obama against big business and for higher taxes on businesses and wealthy people (you know the ones that create jobs), the last thing businesses and the wealthy are going to do is hire people. Therefore, unemployment will remain high, the economy will continue to flounder, and Obama will likely be one (term) and done.