Analysts warn of June gloom after May sales rebound

May's volume bump was an aberration, analysts say.

Automotive industry analysts are calling for a correction back to 2019's sales stagnation in June, with a nearly three-percent decline compared to last year forecast for the month. This drop will correct for what has been described as a "surprisingly strong" May performance for the industry.

In its analysis, Cox Automotive cited steady consumer confidence and employment as the two key factors in keeping 2019 sales steady despite "weak" consumer activity and a volatile market.

"The largest variable this month, and likely throughout this year, is fleet volume," the summary said.

"Sales of both commercial and rental fleet vehicles have been on the rise. One key contributing factor is likely tax law changes found in the 2017 tax reform package. Depreciation allowances for business-use vehicles increased significantly, and as a result, the market has seen more fleet activity and business-use vehicle purchases."

The report said this trend will likely continue "[...] throughout 2019 and beyond."