Surge in car sales is important

The Wall Street Journal reported yesterday that U.S. auto sales were up 11% in December.

Analysis: This is, again, an important economic figure.  The reason is that it shows that U.S. consumers are feeling better about their long-term financial situation and to a degree that is high enough that they are willing to take on additional debt.  That debt is a budget burden for many years.  So to take on that kind of obligation takes some confidence.

Importance grade: 8; other than houses and education, cars are the most expensive things most people buy.  When they open up their budget to allow this sort of thing, it is a very strong indication of consumer confidence.

Jason