Results were particularly strong in Ontario, with 47,560 seasonally adjusted sales – up 10 per cent over 43,254 sales in June. The increase was confined entirely to North American-made vehicles.
Sales of North American-made vehicles increased 15 per cent to 37,538. Sales of vehicles made overseas fell 4.4 per cent to 25,487 units. On a year-over-year basis, Canadian sales remained 7.3 per cent lower than July 2008. In Ontario, the decline was much smaller, with sales down 2.1 per cent compared to last year.
Analysis: An increased number of positive announcements related to economic recovery have boosted Canadian consumer confidence. Improved consumer confidence coupled with low borrowing costs has resulted in upward trending new motor vehicle sales since the beginning of the year. Motor vehicle sales are linked to the manufacturing sector in Ontario, so increasing sales in Canada will play a role in the recovery of this segment of the economy. However, sustained recovery in the Canadian automotive sector will also require a substantial increase in US motor vehicle sales. That said, any increase in consumer spending, especially on big-ticket items like cars and light trucks, bodes well for a Canadian economy that is driven by personal expenditure.