A recovery in new vehicle sales in Alberta
While higher interest rates remain a headwind, it is an encouraging sign that some of the supply chain challenges from the pandemic have started to ameliorate
By Siddhartha Bhattacharya, ATB Economics 26 July 2023 1 min read
Auto sales showed some encouraging signs in May after several difficult years since the pandemic.
The number of new motor vehicles sold in Alberta reached 19,797 units in May 2023, up 30.6% from last May. While passenger cars posted a significant jump, the majority (92.5%) of the aggregate gain was driven by new trucks sold in the month.
After accounting for seasonal variations, monthly units sold stood at the highest level in four years.
Aided by a higher number of units sold and higher prices, new auto sales revenues have risen in Alberta and across Canada. Over the first five months of 2023, sales were up by 17.1%, relative to the same period in 2022. A similar gain of 17.7% was reported nationally.
To provide some context, last year the total number of new motor vehicles sold in Alberta dropped by 7.7% to the lowest level in 22 years. Meanwhile, average consumer prices of passenger vehicles* ballooned 7.9% in 2022, the most since 1986.
While higher interest rates remain a headwind, it is an encouraging sign that some of the supply chain challenges from the pandemic have started to ameliorate and that sales have increased following months of pent-up demand.
*Based on the Alberta consumer price index
Answer to the previous trivia question: The combined GDP of the three members of the Canada-United States-Mexico Agreement (CUSMA) was US$29 trillion in 2022.
Today’s trivia question: Who said “everything is worth what its purchaser will pay for it?”