Gavekal Capital: European Auto Sales (and Next Week's PMI)

Friday, May 16, 2014

European Auto Sales (and Next Week's PMI)

New car registrations in the EU slowed to just 4.5%yoy in April, down from a growth rate of more than 13%yoy in December:

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Interestingly, while new car registrations grew by more than 50%yoy in Portugal and more than 30%yoy in Spain, many of the Nordic countries--as well as Germany-- recorded declines in the rate of vehicle purchases:

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Given a decent correlation between the two variables, the muted rise in overall vehicle sales suggests that next Thursday's release of Manufacturing PMI data for Europe, France, and Germany might not impress the markets:

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