We talk a lot about how housing drives the rest of the economy, and here’s a great example. The Wall Street Journal points out how there’s a direct correlation between home sales (particularly new homes) and pickup truck sales. To wit:
Home construction is the most important driver of light-truck sales, and pickups are big profit makers for General Motors, Ford Motor Co., and Chrysler Group.
“Auto makers,” the paper says, “are encouraged by the latest housing indicators. In June, the rate of new-home construction rose to the highest level in four years, on pace for 760,000 on an annual basis. A continuing recovery in home construction should translate into even faster growth in truck sales in the second half and in 2013.”
The timing is good, too:
A boost in truck sales in the U.S. could increase profits enough to balance out falling sales in Europe and South America.