Of the industries finding sturdy footing in this economy, the domestic auto market is among the leaders.  Just out this morning, the January 2012 U.S. Light Vehicle data has shown that sales have increased to a 14.13 million unit seasonally adjusted annual rate (SAAR).  This is a strong increase from the 13.48 million unit rate in December and the 12.64 million unit rate in January 2011.

The recent increase in auto market sales has been helped by the pent-up demand of consumers who held off on big-ticket purchases as the economy spiraled downward.  According to the most recent Reuters/University of Michigan Consumer Sentiment Survey, the mood of the consumer has begun to improve: The index’s current reading of 75.0 is the highest since February 2011.

With 2011 being the strongest year for domestic light vehicle sales since 2008, the recent data for January auto sales is a great start to 2012.  While sales have increased over the last year or so, they still remain well below average levels (16.00 SAAR), but the recent trend higher shows the auto industry is well on its way to recovery.

The auto industry being a large driver of steel demand, the increased demand for light vehicles is a positive sign for the steel industry.