US automotive sales ticked higher in May, reflecting a persistent resilience in consumer spending as the US/Israel-Iran war continued to keep fuel costs elevated and foster inflationary concerns.
Sales of light vehicles — pickup trucks and cars — edged higher to a seasonally adjusted annual rate of 16.1mn units in May from an upwardly revised 16mn in April, the Bureau of Economic Analysis reported. Last month's total was above May 2025's annualized rate of 15.6mn, which reflected the end of pre-tariff buying after sweeping US import duties took effect and was the second-highest total for 2026 after March's 16.2mn.
Automotive sales continued to recover in May from a slow start to the year following winter storms in January and February, with gains in equity markets during the month and consumers' stronger tax refunds providing further support.
Still, new-vehicle affordability remains a concern, with high fuel costs and other inflationary pressures tied to the war in the Middle East weighing on consumer sentiment. Average US retail gasoline prices last were assessed at $4.305/USG for the week ended 1 June, the latest data from the US Energy Information Administration shows, which represented an increase of $1.178/USG on the year.
Sales of pickup trucks rose by 0.8pc to a 13.4mn annual unit rate in May, while car sales fell by 1.4pc to a nearly 2.7mn unit rate in the same period.
US vehicle production in April reached its highest level since August 2025, rising to a seasonally adjusted rate of 10.45mn units from an upwardly revised 10.04mn in March, the latest Federal Reserve data shows. Auto assemblies are reported with a one-month lag to sales.
