Decent Gains in European Car Registrations Obscure Underlying Slowdown in MomentumJuly 17, 2014
In June, new vehicle registrations in Europe maintained a positive year-over-year growth rate for the tenth month in a row– a trend not seen since before the global financial crisis.
Though registrations fell nearly 2% in Germany, trends remained more positive in the four other largest European economies. Notably, vehicle registrations in Spain have experienced double-digit growth versus a year ago in each of the last four months.
Renault continues to lead other auto manufacturers (as we discussed a while back, here), with registrations growing more than 20%yoy in June.
Whether these positive trends can continue remains to be seen, however. Sales in July and August are usually the weakest of the year. In addition, a number of uptrends in our relative strength point-and-figure charts seem to be easing and/or encountering resistance more recently.
As the charts illustrate, the average daily percent change for the group has declined from +0.13% over the longer-term (252 days) to -0.02% for the most recent 31 day period.
On a relative basis, the average daily percent change has gone from a +0.7% to a -0.7% when comparing the longer-term to more recent moves in prices.