Venezuela: Car sales in free fall
September 5, 2013
In August, car sales fell 24.8% over the same month last year, reaching 8,335 units, according to figures from the Venezuelan Automotive Chamber (CAVENEZ, Camara Automotriz de Venezuela). The reading follows the substantial 21.6% drop in July.
In the 12 months up to August, car sales reached 115,122 units, which is down 12.8% from the level observed in the same period last year (July: -10.6% year-on-year). Car sales remain at less than one fifth of the 491,899-unit peak recorded in the full year 2007. Extreme supply shortages following government restrictions on assembly plants and importers have severely hampered sales of vehicles in recent years.
Given the limited availability of timely data on the real sector, analysts often use car sales as a proxy for private consumption. LatinFocus Consensus Forecast panelists expect private consumption to fall 1.0% this year, which is down 0.1 percentage points from the previous month's estimate. Next year the panel sees private consumption growth at 2.0%.