Economic Snapshot: Car Sales Rebound

What the data shows: Taxable sales of autos and accessories include the sale of new and used cars, sales at repair shops, auto-supply stores and gasoline stations. The most recent data is for October.

What it means: Auto sales rebounded in October on an annual percentage-change basis, likely the result of year-end discounts and tax deductions for the purchase of new cars. Auto sales had fallen in September after a surge in August due to the “cash for clunkers” subsidy. Every area of the Gulf Coast exceeded the modest statewide 1.3% increase in sales of autos and related accessories in October. On an annual percentage basis in October, Palm Beach showed the biggest increase (14%) and Gainesville posted the biggest drop (-5.3%).

Forecast: Year-end dis counts, tax deductions and the closing of dealers selling defunct brands of cars probably boosted auto sales on the Gulf Coast through the holidays. However, January and February auto sales may slow as the uncertain job market persists. In the University of Florida's consumer confidence survey in December, the perception of whether this is a good time to buy a big-ticket item fell slightly.

OCTOBER AUTO SALES
($ in millions)

Area Sales % Change
Punta Gorda $17.1 3.6%
Fort Myers $105.8 6.4%
Tampa $446.9 6.7%
Naples $57.0 6.8%
Sarasota $111.8 6.8%
Source: Florida Legislature Office of Economic and Demographic Research